Author Question: How does an increase in expected profit affect investment demand and the demand for loanable funds ... (Read 95 times)

ssal

  • Hero Member
  • *****
  • Posts: 572
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

  • Sr. Member
  • ****
  • Posts: 356
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



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

No drugs are available to relieve parathyroid disease. Parathyroid disease is caused by a parathyroid tumor, and it needs to be removed by surgery.

Did you know?

Egg cells are about the size of a grain of sand. They are formed inside of a female's ovaries before she is even born.

Did you know?

The most common childhood diseases include croup, chickenpox, ear infections, flu, pneumonia, ringworm, respiratory syncytial virus, scabies, head lice, and asthma.

Did you know?

There are more bacteria in your mouth than there are people in the world.

Did you know?

Long-term mental and physical effects from substance abuse include: paranoia, psychosis, immune deficiencies, and organ damage.

For a complete list of videos, visit our video library