In the above figure, the initial supply of loanable funds curve is SLF0 and the demand for loanable funds investment curve is DLF0. An increase in the real interest rate to 7 percent could be caused by

A) an increase in investment demand.
B) a decrease in the expected profit.
C) an increase in people's disposable incomes.
D) an expansion that increased both saving and investment by the same amount.


A

Economics

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