Question If the business community becomes more optimistic about the profitability of capital, the curve for loanable funds would shift, driving the equilibrium interest rate supply, up supply, down demand, up demand, down

AKNRLQ The Asker · Economics

Transcribed Image Text: If the business community becomes more optimistic about the profitability of capital, the curve for loanable funds would shift, driving the equilibrium interest rate supply, up supply, down demand, up demand, down
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Transcribed Image Text: If the business community becomes more optimistic about the profitability of capital, the curve for loanable funds would shift, driving the equilibrium interest rate supply, up supply, down demand, up demand, down
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IS8WAM

If Profitablility of capital in future increases then Demand for loanable funds will increase.  That is demand for loanable funds will shift to the right , which will cause increase in interest rat ... See the full answer