Real interest rate (percent per year)1020DLF150 300 450 600 750 900Loanable funds (billions of 2009 dollars)In the above figure, technological progress that increases the expected profit willshift the demand for loanable funds curve leftward.shift the demand for loanable funds curve rightward.have no effect on the demand for loanable funds curve.make the demand for loanable funds curve become horizontal.

The loanable fund theory explains the determination of real interest rate. The demand for loan fund…

In the above figure, technological progress that increases the expected profit will O shift the demand for loanable funds curve leftward. O shift the demand for loanable funds curve rightward. O have no effect on the demand for loanable funds curve. O make the demand for loanable funds curve become horizontal.

In the above figure, technological progress that increases the expected profit will O shift the demand for loanable funds curve leftward. O shift the demand for loanable funds curve rightward. O have no effect on the demand for loanable funds curve. O make the demand for loanable funds curve become horizontal.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter16: Interest, Rent, And Profit

Section: Chapter Questions

Problem 3QP

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Loanable fund graph- show the result of a fiscal, crowding out and the effect on the supply of loanable funds
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