Question: Use the graph to answer the question that follows. Real Interest Rate 2 D Q2 Quantity of Funds Which of the following scenarios would correspond

 Use the graph to answer the question that follows. Real Interest

Rate 2 D Q2 Quantity of Funds Which of the following scenarios

Use the graph to answer the question that follows. Real Interest Rate 2 D Q2 Quantity of Funds Which of the following scenarios would correspond to the shift from $1 to $2 depicted above? O The government offers a subsidy to starting new businesses. The economy experiences a severe recession. Households increase their savings. O The government fiscal deficit increases. The central bank sells bonds on the open market

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