Multiple Choice

-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 per cent could be caused by
A) a decrease in the expected profit.
B) an increase in people's disposable incomes.
C) an expansion that increased both saving and investment by the same amount.
D) an increase in investment demand.
Correct Answer:
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