In the market for loanable dollars, an increase in the profitability of investments overall will be revealed in

Question

Quizplus · Accepted Answer

An increase in the profitability of investments overall incentivizes businesses and individuals to invest more, thus increasing the demand for loanable dollars. This is because they need to borrow money to finance their investments. Therefore, an increase in profitability leads to an increase in demand for loanable dollars.

In the Market for Loanable Dollars, an Increase in the Profitability