Refer to the Figure Below to Answer the Following Questions

question 96

Multiple Choice

Refer to the figure below to answer the following questions.
Figure 7.2.5
-In Figure 7.2.5, the supply of loanable funds curve is SLF₀ and the demand for loanable funds curve is DLF₀.An expansion that increases disposable income and expected profit

• A)increases the inflation rate.
• B)has no effect on either the demand for loanable funds curve or the supply of loanable funds curve.
• C)shifts the supply of loanable funds curve rightward to curve SLF₁, and shifts the demand for loanable funds curve rightward to curve DLF₁.
• D)shifts the demand for loanable funds curve rightward to curve DLF₁ and does not shift the supply of loanable funds curve.
• E)shifts the supply of loanable funds curve rightward to curve SLF₁ and does not shift the demand for loanable funds curve.

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