Use the Following to Answer Question(s): Loanable Funds and Capital

Use the following to answer question(s) : Loanable Funds and Capital Markets

-(Exhibit: Loanable Funds and Capital Markets) A decrease in saving and a:

A) subsequent rise in the supply of loanable funds is shown in Panel (c) .
B) fall in the supply of loanable funds is shown in Panel (c) .
C) subsequent increase in the demand for capital is shown in Panel(b) .
D) rise in the interest rate is shown in Panel (d) as a movement along the demand for financial capital curve from a lower interest rate to a higher interest rate.