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

Question 78

Multiple Choice

-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 would shift leftward to a curve such as SLF1. B) There would be a movement to a point such as b on the supply of loanable funds curve SLF0. C) The supply of loanable funds curve would shift rightward to a curve such as SLF2. D) Nothing; the economy would remain at point a.
-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 would shift leftward to a curve such as SLF1.
B) There would be a movement to a point such as b on the supply of loanable funds curve SLF0.
C) The supply of loanable funds curve would shift rightward to a curve such as SLF2.
D) Nothing; the economy would remain at point a.

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