How Does an Increase in Expected Profit Affect Investment Demand

question 234

Essay

How does an increase in expected profit affect investment demand and the demand for loanable funds curve?

---

Definitions:

Note Payable

A written promise to pay a specific amount to a party on a certain date or on demand. It is a liability in the books of the borrower.

Due Date

The specified date by which a payment must be made, or a task or assignment must be completed.

Defined Contribution Plan

A pension plan that requires a fixed amount of money to be invested on the employee’s behalf during the employee’s working years.

Annual Pension Benefit

The amount a retiree receives yearly from their pension plan, which is based on factors such as salary history and years of service.