What Is the Effect of a Decrease in Expected Profit

question 20

Multiple Choice

What is the effect of a decrease in expected profit?

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

---

Definitions:

Fidelity

The quality of being faithful or loyal to commitments or promises.

Morals

Principles or beliefs concerning the distinction between right and wrong or good and bad behavior.

Infotainment

Media content that combines information and entertainment, designed to be engaging while also providing news or educational material.

Entertainment Media Vehicles

Platforms or mediums used to deliver entertainment content to the public, such as television, film, and digital formats.