The more profitable becomes, the more firms are rewarded for borrowing money to invest in new capital. thus if capital is perceived as more profitable, the for loanable funds would shift to the driving the equilibrium interest rate

The correct answer is: capital; demand; right; up

Explanation:

As the profitability of capital increases, the firms will get more return from investing in capital. So, if the profitability of capital increases, firms will want to invest more in capital. For that they will need funds. Thus, the demand for loanable funds will increase, shifting the curve to right. This increase in demand will further lead to increase in the interest rate.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi