Multiple Choice
Refer to the figure below to answer the following question.
Figure 23.2.1
-Refer to Figure 23.2.1. In Figure 23.2.1, the economy is at point A on the initial demand for loanable funds curve DLF₀. What happens if the real interest rate rises?
A) There is a movement to a point such as B on the demand for loanable funds curve DLF₀.
B) The demand for loanable funds curve shifts rightward to curve DLF₂.
C) The demand for loanable funds curve shifts leftward to curve DLF₁.
D) Either A or B can occur.
E) Either A or C can occur.
Correct Answer:
Verified
Correct Answer:
Verified
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