Refer to the Figure Below to Answer the Following Question

question 123

Multiple Choice

Refer to the figure below to answer the following question.

Figure 23.2.1
-Refer to Figure 23.2.1. In Figure 23.2.1, the economy is at point A on the initial demand for loanable funds curve DLF₀. What happens if the real interest rate rises?

• A)There is a movement to a point such as B on the demand for loanable funds curve DLF₀.
• B)The demand for loanable funds curve shifts rightward to curve DLF₂.
• C)The demand for loanable funds curve shifts leftward to curve DLF₁.
• D)Either A or B can occur.
• E)Either A or C can occur.

---

Definitions:

Point-Of-Purchase Displays

In-store advertising or marketing materials positioned at retail checkout areas or other point-of-sale locations to encourage impulse purchases or inform customers about products.

End-Aisle Displays

Promotional displays located at the end of store aisles, used to catch shoppers' attention and promote products, often accompanied by special offers.

Extended Service Warranties

Additional coverage that consumers can purchase to extend the warranty period of a product, providing longer protection against defects or failures.

Selective Retention

The psychological process by which individuals remember information that is consistent with their beliefs and forget information that is inconsistent.