If expected profit falls, the demand for loanable funds curve shifts ________, and the real interest rate ________.

Name: If expected profit falls, the demand for loanable funds curve shifts ________, and the real interest rate ________.
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When expected profit falls, firms are less inclined to borrow for investment, leading to a leftward shift in the demand for loanable funds curve. This decrease in demand for loans typically results in a lower equilibrium real interest rate.

If Expected Profit Falls, the Demand for Loanable Funds Curve