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Author Question: What are the factors that change investment demand and shift the demand for loanable funds curve? ... (Read 176 times)

mikaylakyoung

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on: Jun 29, 2018
What are the factors that change investment demand and shift the demand for loanable funds curve?
 
  What will be an ideal response?

Question 2

Which of the following is consistent with the classical theory of growth?
 
  A) permanent increases in real wages
  B) permanent growth in productivity
  C) rapid population growth in poor countries
  D) permanent increases in living standards


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zogaridan

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Reply #1 on: Jun 29, 2018
Answer to Question 1

Investment demand changes with the changes in the expected profit. The expected profit depends on technological change. Investment increases and so the demand for loanable funds curve shifts rightward when technology advances.

Answer to Question 2

C


mikaylakyoung

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Reply #2 on: Jun 29, 2018
Thank you


zogaridan

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Reply #3 on: Jun 29, 2018
No problemo


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