When the expected profit ________, investment demand ________ and the demand for loanable funds curve shifts ________.
A) falls; decreases; leftward
B) rises; increases; leftward
C) falls; decreases; rightward
D) rises; decreases; rightward
E) falls; increases; rightward

Question

Quizplus · Accepted Answer

When the expected profit falls, firms are less likely to invest in new projects, meaning investment demand decreases. As a result, the demand for loanable funds curve shifts leftward, as there is less demand for borrowing funds to finance investments.

When the Expected Profit ________, Investment Demand ________ and the Demand

When the Expected Profit , Investment Demand and the Demand