The Saving-Investment Diagram Shows That a Higher Real Interest Rate

Multiple Choice

The saving-investment diagram shows that a higher real interest rate due to a leftward shift of the saving curve

A) raises the profitability of investment for firms.
B) causes the amount of firms' investment to increase.
C) increases the total amount of saving because of the increase in the real interest rate.
D) causes the total amounts of saving and investment to fall.