-In the Above Figure, the Initial Supply of Loanable Funds

Multiple Choice

-In the above figure, the initial supply of loanable funds curve is SLF₀ and the initial demand for loanable funds curve is DLF₀. An economic expansion that raises disposable income and the expected profit would

A) only shift the supply of loanable funds curve rightward to a curve such as SLF₁.
B) shift the supply of loanable funds curve rightward to a curve such as SLF₁, and shift the demand for loanable funds curve rightward to a curve such as DLF₁.
C) only shift the demand for loanable funds curve rightward to a curve such as DLF₁.
D) have no effect on either the demand for loanable funds curve or the supply of loanable funds curve.