In the above figure, the economy is at point a on the initial supply of loanable funds curve SLF0. What happens if disposable income decreases?

A) Nothing; the economy would remain at point a.
B) There would be a movement to a point such as b on supply of loanable funds curve SLF0.
C) The supply of loanable funds curve would shift rightward to a curve such as SLF2.
D) The supply of loanable funds curve would shift leftward to a curve such as SLF1.

D

Economics

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