-In the Above Figure, the Economy Is at Point a on the Initial

question 84

Multiple Choice

-In the above figure, the economy is at point a on the initial supply of loanable funds curve SLF0. What happens if the real interest rate rises?

• A)The supply of loanable funds curve shifts rightward to a curve such as SLF2.
• B)The supply of loanable funds curve shifts leftward to a curve such as SLF1.
• C)There is a movement to a point such as b on the supply of loanable funds curve SLF0.
• D)None of the above.

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