Suppose That There Is an Increase in Disposable Income and Simultaneously

Multiple Choice

Suppose that there is an increase in disposable income and simultaneously an increase in the expected profitability of investment. As a result, the equilibrium real interest rate _{--------------------}and the
Equilibrium quantity of loanable funds_{----------------------------------------} .

A) might rise, fall, or remain unchanged; increases
B) might rise, fall, or remain unchanged; decreases
C) rises; increases
D) remains unchanged; increases
E) falls; increases