If Suddenly a 4 Percent Inflation Rate (Instead of a Zero

Multiple Choice

If suddenly a 4 percent inflation rate (instead of a zero percent inflation rate) is expected by both suppliers and demanders in the loanable funds market, then

A) the demand for loanable funds curve will shift rightward, and the supply of loanable funds curve will shift leftward.
B) the demand for loanable funds curve will shift leftward, and the supply of loanable funds curve will shift rightward.
C) both the demand for loanable funds curve and the supply of loanable funds curve will shift leftward.
D) both the demand for loanable funds curve and the supply of loanable funds curve will shift rightward.