Suppose That Expected Profit Decreases. This Change Means

question 224

Multiple Choice

Suppose that expected profit decreases. This change means

• A) the supply curve for loanable funds shifts rightward and the nominal interest rate rises.
• B) the real interest rate rises as saving increases.
• C) the demand curve for loanable funds shifts leftward and the real interest rate falls.
• D) there is a movement down along the demand curve for loanable funds.

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