If Expected Profit Falls, the Demand for Loanable Funds Curve

question 73

Multiple Choice

If expected profit falls, the demand for loanable funds curve shifts_{--------------------} and the real interest rate_{--------------------} .

• A)rightward; falls
• B)rightward; rises
• C)leftward; does not change
• D)leftward; falls
• E)leftward; rises

---

Definitions:

Consideration

A fundamental concept in contract law that involves something of value given by both parties to an agreement as an inducement to enforce the contract.

Enforce A Contract

The legal process of compelling parties to comply with the terms of a contract through court action.

Extra Vacation Week

An additional week of vacation time granted to employees beyond what is normally provided by the employer's standard policy.

Valuable Employee

An individual whose work performance, skills, or contribution significantly benefits their employer.