Refer to the Figure Below to Answer the Following Questions

question 85

Multiple Choice

Refer to the figure below to answer the following questions.

Figure 23.2.4
-Refer to 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)None of the above.