First call, inc. is a wireless service provider. first call expects its profit to double next year. if other things remain the same, explain how this increase in expected profit influences first call's demand for loanable funds. this increase in expected profit the demand for loanable funds and brings the demand for loanable funds curve. a. increases; a movement along. b. increases; both a movement along and a rightward shift of. c. does not change; a movement along. d. increases; a rightward shift of. e. decreases; a leftward shift of.

D) increases; a rightward shift of

This increase in expected profit INCREASES the demand for loanable funds and brings A RIGHTWARD SHIFT OF the demand for loanable funds curve.

Explanation:

Since First Call expects to double its profit, it will try to expand its operating activities and to do so they either issue new stocks or takes more loans (from banks or by issuing bonds). First Call's demand for new loans will cause the demand for loanable funds curve to shift to the right, changing the equilibrium loan price (interest rate). The new equilibrium point will be higher (higher interest rates = higher loan prices).

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