-In the Above Figure, the Demand for Loanable Funds Curve

Multiple Choice

-In the above figure, the demand for loanable funds curve is drawn for the average expected profit. If the real interest rate is constant at 6 percent and the expected profit falls, the amount of loanable funds demanded will be

A) less than $450 billion.
B) $450 billion.
C) between $450 billion and $600 billion.
D) greater than $600 billion.