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Figure 23.2.4 -In Figure 23.2.4, the Economy Is at Point a on at Point

question 33

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Figure 23.2.4
Figure 23.2.4    -In Figure 23.2.4, the economy is at point A on the supply of loanable funds curve SLF<sub>0</sub>. 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 SLF<sub>0</sub>. C) The supply of loanable funds curve shifts rightward to a curve such as SLF<sub>2</sub>. D) The supply of loanable funds curve shifts leftward to a curve such as SLF<sub>1</sub>. E) The supply of loanable funds curve becomes steeper.
-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?


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