-In the above figure, the economy is at point a on the initial supply of loanable funds curve SLF₀. What happens if real wealth decreases? A) Nothing; the economy would remain at point a. B) There would be a movement to a point such as b on supply of loanable funds curve SLF₀. C) The supply of loanable funds curve would shift rightward to a curve such as SLF₂. D) The supply of loanable funds curve would shift leftward to a curve such as SLF₁.

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The Answer of -In the above figure, the economy is at point a on the initial supply of loanable funds curve SLF₀. What happens if real wealth decreases? A) Nothing; the economy would remain at point a. B) There would be a movement to a point such as b on supply of loanable funds curve SLF₀. C) The supply of loanable funds curve would shift rightward to a curve such as SLF₂. D) The supply of loanable funds curve would shift leftward to a curve such as SLF₁.

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