Use the Figure Below to Answer the Following Question(s)

Multiple Choice

Use the figure below to answer the following question(s) . Figure 10-8
If the economy were operating at point a in Figure 10-8, the real rate of interest would tend to

A) decrease and move the economy toward point c.
B) decrease and move the economy toward point b.
C) increase and move the economy toward point c.
D) increase and move the economy toward point b.