An increase in the expected profit from new capital brings about a

A) movement down along the demand for loanable funds curve.
B) movement up along the demand for loanable funds curve.
C) rightward shift of the demand for loanable funds curve.
D) leftward shift of the demand for loanable funds curve.
E) rightward shift of the supply of loanable funds curve.

C

Economics

You might also like to view...

The Buda Agri Corporation is the sole employer in rural Hungary. In the labor market, Buda Agri is a

A) monopolistic competitor. B) perfect competitor. C) monopsony. D) monopoly.

Economics

The presence of deposit insurance in the savings and loan industry

A) created an adverse selection problem because good S&Ls were forced out of the market. B) solved its own adverse selection problem because it pushed badly managed S&Ls out of the market. C) contributed to "depositor moral hazard" but did not involve a moral hazard problem with owners. D) contributed to "moral hazard by owners" but did not involve a moral hazard problem with depositors. E) contributed to both "depositor moral hazard" and "moral hazard by owners."

Economics