Refer to the figure below to answer the following questions.

Figure 23.2.5
-Refer to Figure 23.2.5. In Figure 23.2.5, the initial supply of loanable funds curve is SLF₀ and the initial demand for loanable funds curve is DLF₀. An increase in the expected profit

Question

Refer to the figure below to answer the following questions.
  
Figure 23.2.5
-Refer to Figure 23.2.5. In Figure 23.2.5, the initial supply of loanable funds curve is SLF₀ and the initial demand for loanable funds curve is DLF₀. An increase in the expected profit

Quizplus · Accepted Answer

An increase in expected profit typically increases the demand for loanable funds as businesses are more willing to borrow to invest in profitable opportunities, shifting the demand curve rightward. The supply curve is not directly affected by expected profit changes.

Refer to the Figure Below to Answer the Following Questions