-In the Above Figure, the Initial Supply of Loanable Funds

question 184

Multiple Choice

-In the above figure, the initial supply of loanable funds curve is SLF₀ and the demand for loanable funds investment curve is DLF₀. An increase in the real interest rate to 7 percent could be caused by

• A) an increase in investment demand.
• B) a decrease in the expected profit.
• C) an increase in people's disposable incomes.
• D) an expansion that increased both saving and investment by the same amount.

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