Suppose that expected profit decreases. This change means
A) the demand curve for loanable funds shifts leftward and the real interest rate falls.
B) the supply curve for loanable funds shifts rightward and the nominal interest rate rises.
C) there is a movement down along the demand curve for loanable funds.
D) the real interest rate rises as saving increases.
A
You might also like to view...
A perfect market would have all but which of the following characteristics?
A) Infinitely divisible securities B) Asymmetric information C) Buyers and sellers of financial instruments would know the true quality of what they are buying and selling. D) Buyers and sellers could transact with each other without cost (no transactions costs).
A criticism of the unemployment rate is that:
a. underemployment is measured in the calculation. b. the data includes part-time workers as fully employed. c. discouraged workers are included in the calculation. d. all of these are problems.