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

question 113

Multiple Choice

-In the above figure, the economy is at point a on the initial demand for loanable funds curve DLF0. What happens if the real interest rate rises?

• A)The demand for loanable funds curve shifts leftward to a curve such as DLF1.
• B)The demand for loanable funds curve shifts rightward to a curve such as DLF2.
• C)There is a movement to a point such as b on the demand for loanable funds curve DLF0.
• D)None of the above

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