If the Real Interest Rate Rises from 3 Percent a Year

Multiple Choice

If the real interest rate rises from 3 percent a year to 5 percent a year,

A) there is a movement down along the supply of loanable funds curve.
B) the supply of loanable funds curve shifts rightward.
C) the nominal interest rate falls.
D) the demand for loanable funds curve shifts rightward.
E) there is a movement up along the demand for loanable funds curve.