Refer to the Figure Below to Answer the Following Questions

question 65

Multiple Choice

Refer to the figure below to answer the following questions.

Figure 23.2.4
-In Figure 23.2.4, the economy is at point A on the supply of loanable funds curve SLF₀. What happens if the real interest rate rises?

• A)Nothing; the economy would remain at point A.
• B)There is a movement to a point such as B on the supply of loanable funds curve SLF₀.
• C)The supply of loanable funds curve shifts rightward to a curve such as SLF₂.
• D)The supply of loanable funds curve shifts leftward to a curve such as SLF₁.
• E)The supply of loanable funds curve becomes steeper.

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Definitions:

Ethnic Identity

A person's sense of belonging to a particular ethnic group, including the customs, culture, and perception of shared heritage or ancestry.

Middle Eastern

Pertaining to the geographical region that encompasses Western Asia and Egypt, noted for its distinct cultural, religious, and historical identity.

Merchandise Inventory

The goods and products a retail or wholesale company holds for the purpose of resale to customers.

Liability Account

A financial reporting category that encompasses all obligations or debts a company owes to outside parties.