A Decrease in Expected Profit

question 2

Multiple Choice

A decrease in expected profit

• A)increases the demand for loanable funds.
• B)lowers the equilibrium real interest rate.
• C)increases the supply of loanable funds.
• D)raises the equilibrium real interest rate.
• E)decreases the supply of loanable funds.

---

Definitions:

Premiums

Regular payments made to keep an insurance policy active and maintain coverage against risks.

Endowment Policy

A life insurance contract designed to pay a lump sum after a specific term or on death.

Life Policy

An agreement that awards a specified sum to a named beneficiary when the person covered by the policy dies.

Maximum Available

The highest amount or quantity that can be used, offered, or allocated from a particular resource or within a specific framework.