Refer to the Figure Below to Answer the Following Questions

Multiple Choice

Refer to the figure below to answer the following questions.
Figure 7.2.5
-In Figure 7.2.5, the initial supply of loanable funds curve is SLF₀ and the initial demand for loanable funds curve is DLF₀.An increase in the expected profit

A) shifts the supply of loanable funds curve rightward to curve SLF₁, and shifts the demand for loanable funds curve rightward to curve DLF₁.
B) has no effect on either the demand for loanable funds curve or the supply of loanable funds curve.
C) increases the inflation rate.
D) shifts the demand for loanable funds curve rightward to curve DLF₁ and does not shift the supply of loanable funds curve.
E) shifts the supply of loanable funds curve rightward to curve SLF₁ and does not shift the demand for loanable funds curve.