What is the effect of a decrease in expected profit?
A) The demand curve for loanable funds shifts leftward and the real interest rate falls.
B) The supply curve of loanable funds shifts rightward and the nominal interest rate rises.
C) A movement down along the demand curve for loanable funds occurs.
D) The real interest rate rises as saving increases.
E) The demand curve for loanable funds shifts rightward and the real interest rate rises.
Correct Answer:
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Q89: In Canada's economy, investment is financed by
A)C
Q90: Refer to the figure below to answer
Q91: Technological progress that increases expected profit shifts
Q92: In the market for loanable funds, as
Q93: If disposable income increases, people _ saving
Q95: Refer to the figure below to answer
Q96: The equilibrium real interest rate is determined
Q97: Refer to the figure below to answer
Q98: Suppose the market for loanable funds is
Q99: Suppose the current real interest rate is
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