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

What will be an ideal response?


An increase in expected profit increases investment and shifts the demand for loanable funds curve rightward.

Economics

You might also like to view...

Which of the following statements best explains how the use of money in an economy increases economic efficiency?

A) Money increases economic efficiency because it is costless to produce. B) Money increases economic efficiency because it discourages specialization. C) Money increases economic efficiency because it decreases transactions costs. D) Money cannot have an effect on economic efficiency.

Economics

All other factors equal, if the costs of converting bonds and other financial securities to a means of payment increase:

A. it shouldn't impact the transactions demand for money. B. nominal interest rates should decrease. C. the transactions demand for money should increase. D. the transactions demand for money should decrease.

Economics

______ revenue equals total revenue divided by the number of units of the product sold.

a. Marginal b. Percentage c. Average d. Partial

Economics

The government program that provides aid to families in need is

A) TANF. B) Social Security program. C) Supplemental Security Income program. D) Earned Income Tax Credit.

Economics