-In the above figure, the economy is at point a on the initial supply of loanable funds curve SLF0. What happens if the real interest rate rises?
A)The supply of loanable funds curve shifts rightward to a curve such as SLF2.
B)The supply of loanable funds curve shifts leftward to a curve such as SLF1.
C)There is a movement to a point such as b on the supply of loanable funds curve SLF0.
D)None of the above.

Question

-In the above figure, the economy is at point a on the initial supply of loanable funds curve SLF0. What happens if the real interest rate rises?
A)The supply of loanable funds curve shifts rightward to a curve such as SLF2. 
B)The supply of loanable funds curve shifts leftward to a curve such as SLF1. 
C)There is a movement to a point such as b on the supply of loanable funds curve SLF0. 
D)None of the above.

Quizplus · Accepted Answer

The Answer is C

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