A decrease in the real interest rate leads to a ________ the demand for loanable funds curve, and a decrease in expected profit leads to a ________ the demand for loanable funds curve.
A)rightward shift of; leftward shift of
B)movement down along; movement up along
C)rightward shift of; movement up along
D)movement down along; leftward shift of
E)movement down along; rightward shift of

Question

Quizplus · Accepted Answer

A decrease in the real interest rate causes a movement down along the demand for loanable funds curve, while a decrease in expected profit causes a leftward shift of the curve.

A Decrease in the Real Interest Rate Leads to a ________