why increase in expected inflation will lead to increase in financial capital from businesses.
are you asking: “why increase in expected inflation will lead to increase in financial capital DEMAND from businesses”? If yes, one reason could be that b/k in future value of money is expected to reduce… ie if you can buy a machine for 1Million today, in future you may have to pay 1.1 Million. So they will try to implement their capital expenditure plans asap…