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-In the Above Figure, the Initial Supply of Loanable Funds

Question 167

Multiple Choice

-In the above figure, the initial supply of loanable funds curve is SLF<sub>0 </sub>and the demand for loanable funds investment curve is DLF<sub>0</sub>. An increase in the real interest rate to 7 percent could be caused by A) a decrease in the expected profit. B) an increase in investment demand. C) an increase in people's disposable incomes. D) an expansion that increased both saving and investment by the same amount.
-In the above figure, the initial supply of loanable funds curve is SLF0 and the demand for loanable funds investment curve is DLF0. An increase in the real interest rate to 7 percent could be caused by


A) a decrease in the expected profit.
B) an increase in investment demand.
C) an increase in people's disposable incomes.
D) an expansion that increased both saving and investment by the same amount.

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