Question: Hello, I need help with this question. The solution I selected was incorrect. Refer to Figure below, the economy is at point A on the

Hello, I need help with this question. The solution I selected was incorrect.

Refer to Figure below, the economy is at point A on the initial demand for loanable funds curve DLFO. What happens if expected profit rises? Real interest rate (percent per year) DLF DLFo DLF Loanable funds (billions of 2002 dollars) The demand for loanable funds curve shifts rightward to curve DLF2. There is a movement to a point such as B on the demand for loanable funds curve DLFO. The demand for loanable funds curve shifts leftward to curve DLF1. There is a downward movement on the demand for loanable funds curve DLFO

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