Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 

If the demand for loanable funds curve shifts rightward from the curve shown in the figure above, the shift could be the result of

A) a rise in the real interest rate. B) a decrease in expected profit. C) a fall in the real interest rate. D) an increase in expected profit. E) a decrease in real GDP. The figure above shows the supply of loanable funds curve.

Define the three functions of money

What will be an ideal response?