Asked by
Moody’s Channel
on Oct 25, 2024
Verified
As firms' expected profit from new capital projects falls,
A) the supply of loanable funds will shift rightward.
B) the supply of loanable funds will shift leftward.
C) the demand for loanable funds will shift rightward.
D) the demand for loanable funds will shift leftward.
E) projects must become more profitable
Expected Profit
The anticipated earnings from an investment or business venture after accounting for potential risks and expenses.
Loanable Funds
The total amount of capital available for borrowing, comprised of savings from individuals, businesses, and government, which is available for investment purposes.
- Perceive the factors that instigate modifications in the supply and demand for loanable funds and their ramifications on interest rates.
Verified Answer
JC
Learning Objectives
- Perceive the factors that instigate modifications in the supply and demand for loanable funds and their ramifications on interest rates.