Multiple Choice
Refer to the figure below to answer the following question.
Figure 7.2.1
-In Figure 7.2.1, the economy is at point A.What happens if the real interest rate rises?
A) There is a movement to a point such as B.
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.
Correct Answer:

Verified
Correct Answer:
Verified
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