Refer to the figure below to answer the following question.

Figure 23.2.1
-Refer to Figure 23.2.1. In Figure 23.2.1, the economy is at point A on the initial demand for loanable funds curve DLF₀. What happens if the real interest rate rises?
A)There is a movement to a point such as B on the demand for loanable funds curve DLF₀.
B)The demand for loanable funds curve shifts rightward to curve DLF₂.
C)The demand for loanable funds curve shifts leftward to curve DLF₁.
D)Either A or B can occur.
E)Either A or C can occur.

Question

Refer to the figure below to answer the following question.
  
Figure 23.2.1
-Refer to Figure 23.2.1. In Figure 23.2.1, the economy is at point A on the initial demand for loanable funds curve DLF₀. What happens if the real interest rate rises?
A)There is a movement to a point such as B on the demand for loanable funds curve DLF₀. 
B)The demand for loanable funds curve shifts rightward to curve DLF₂. 
C)The demand for loanable funds curve shifts leftward to curve DLF₁. 
D)Either A or B can occur. 
E)Either A or C can occur.

Quizplus · Accepted Answer

The Answer of Refer to the figure below to answer the following question.
  
Figure 23.2.1
-Refer to Figure 23.2.1. In Figure 23.2.1, the economy is at point A on the initial demand for loanable funds curve DLF₀. What happens if the real interest rate rises?
A)There is a movement to a point such as B on the demand for loanable funds curve DLF₀. 
B)The demand for loanable funds curve shifts rightward to curve DLF₂. 
C)The demand for loanable funds curve shifts leftward to curve DLF₁. 
D)Either A or B can occur. 
E)Either A or C can occur.

Refer to the Figure Below to Answer the Following Question