

-In the above figure, the economy is at point a on the initial supply of loanable funds curve SLF?. What happens if the interest rate rises?
A) There is a movement to a point such as b on supply of loanable funds curve SLF?.
B) The supply of loanable funds curve shifts rightward to a curve such as SLF?.
C) The supply of loanable funds curve shifts leftward to a curve such as SLF?.
D) none of the above
Correct Answer:
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