-In the figure above, the rightward shift from the demand for loanable funds curve DLF₁ to the demand for loanable funds curve DLF₂, could be the result of
A) a rise in the interest rate.
B) an increase in wealth.
C) an increase in expected profit.
D) a decrease in expected profit.
E) a fall in the interest rate.

Question

-In the figure above, the rightward shift from the demand for loanable funds curve DLF₁ to the demand for loanable funds curve DLF₂, could be the result of
A) a rise in the interest rate. 
B) an increase in wealth. 
C) an increase in expected profit. 
D) a decrease in expected profit. 
E) a fall in the interest rate.

Quizplus · Accepted Answer

An increase in expected profit would lead to more investment, increasing the demand for loanable funds and causing a rightward shift in the demand curve.

-In the Figure Above, the Rightward Shift from the Demand