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-In the Above Figure, the Economy Is at Point a on the Initial

Question 111

Multiple Choice

-In the above figure, the economy is at point a on the initial demand for loanable funds curve DLF<sub>0</sub>. What happens if the real interest rate rises? A) The demand for loanable funds curve shifts leftward to a curve such as DLF<sub>1</sub>. B) There is a movement to a point such as b on the demand for loanable funds curve DLF<sub>0</sub>. C) The demand for loanable funds curve shifts rightward to a curve such as DLF<sub>2</sub>. D) none of the above
-In the above figure, the economy is at point a on the initial demand for loanable funds curve DLF0. What happens if the real interest rate rises?


A) The demand for loanable funds curve shifts leftward to a curve such as DLF1.
B) There is a movement to a point such as b on the demand for loanable funds curve DLF0.
C) The demand for loanable funds curve shifts rightward to a curve such as DLF2.
D) none of the above

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