Author Question: How does an increase in expected profit affect investment demand and the demand for loanable funds ... (Read 126 times)

ssal

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How does an increase in expected profit affect investment demand and the demand for loanable funds curve?
 
  What will be an ideal response?

Question 2

Taxes can adversely affect free exchange.
 
  Indicate whether the statement is true or false



fraziera112

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Answer to Question 1

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

Answer to Question 2

TRUE



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