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Figure 7.2.2 Refer to Figure 7.2.2, which shows three demand for loan...

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Short Description: A line graph of real interest rate versus loanable funds. Long Description: The vertical axis is labelled, real interest rate (percent per year) and ranges from 0 to 8 in increments of 1. The horizontal axis is labelled, loanable funds (trillions of 20 12 dollars) and ranges from 0 to 2.0 in increments of 0.5. The line for D L F0 slopes downward from the upper left corner to the lower right corner. The line passes through the points I (0.75, 5), E (1.0, 4), and G (1.25, 3). The line for D L F1 slopes downward from the upper left corner to the lower right corner, parallel to the line for D L F0 on the right. The line passes through the point F (1.5, 4). The line for D L F2 slopes downward from the upper left corner to the lower right corner, parallel to the line for D L F0 on the left. The line passes through the point H (0.5, 4). The values used in the description are approximate.

Figure 7.2.2

Refer to Figure 7.2.2, which shows three demand for loanable funds curves. If the economy is at point A, what happens when expected profit increases.
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