-In the Above Figure, the Demand for Loanable Funds Curve

question 118

Multiple Choice

-In the above figure, the demand for loanable funds curve is drawn for the average expected profit. If the real interest rate is constant at 6 percent and the expected profit falls, the amount of loanable funds demanded will be

• A) between $450 billion and $600 billion.
• B) less than $450 billion.
• C) greater than $600 billion.
• D) $450 billion.

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