The following figure shows two credit demand curves, CD₁ and CD₂, and two credit supply curves, CS₁ and CS₂.

-Refer to the figure above.Which of the following statements is true when the credit demand curve is CD₁ and the credit supply curve is CS₁?
A) At all rates of interest above 1 percent, there will be a tendency for real interest rates to fall.
B) At all rates of interest above 2 percent, there will be a tendency for real interest rates to fall.
C) At all rates of interest above 3 percent, there will be a tendency for real interest rates to fall.
D) At all rates of interest above 4 percent, there will be a tendency for real interest rates to fall.
Correct Answer:
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