Which of the following occurs if the expected profit increases?
A)Investment demand decreases and the demand for loanable funds curve shifts leftward.
B)The savings increases and the supply of loanable funds curve shifts rightward.
C)Investment demand increases and the demand for loanable funds curve shifts rightward.
D)The quantity of investment demanded decreases and there is a movement up along the demand for loanable funds curve.
E)The quantity of investment demanded increases and there is a movement down along the demand for loanable funds curve.

Question

Quizplus · Accepted Answer

When expected profit increases, businesses are more likely to invest, increasing investment demand and shifting the demand for loanable funds curve rightward.

Which of the Following Occurs If the Expected Profit Increases