Question: help me solve this question The figure to the right shows the loanable funds market. If the real interest rate is 2 percent, then there

help me solve this question

The figure to the right shows the loanable funds market. If the real interest rate is 2 percent, then there O A. will be a leftward shift in the demand for loanable funds curve. O B. will be government intervention in the market to make sure there is no credit crisis. C. is a surplus in the loanable funds market. D. is a shortage in the loanable funds market E. demand for loanable funds curve will shift rightward. Real interest rate (percent per year) SLF 10 8 6 x 4+ 2 DLF 0 1.0 + 1.5 2.0 2.5 3.0 3.5 Loanable funds (trillions of 2005 dollars)

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