Figure 23.2.1 -Refer to Figure 23.2.1. in Figure 23.2.1, the Economy Is

question 83

Multiple Choice

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.

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