During a period of economic expansion,when expected profitability is high,the:
A) equilibrium price of bonds increases.
B) equilibrium interest rate falls.
C) supply curve for bonds shifts to the left.
D) demand curve for loanable funds shifts to the right.

Question

Quizplus · Accepted Answer

During economic expansion with high expected profitability, businesses are more likely to invest, increasing the demand for loanable funds, which shifts the demand curve for loanable funds to the right.

During a Period of Economic Expansion,when Expected Profitability Is High,the