Refer to the Following Figure When Answering

Multiple Choice

Refer to the following figure when answering
Figure 11.5: IS Curve
-Consider Figure 11.5. If the economy initially is at its long-run equilibrium and the real interest rate decreases, the economy:

A) moves from point b to point a
B) moves from point d to point a
C) moves from point d to point c
D) moves from point c to point d
E) moves from point d to point b