Question
Figure 3. The figure shows two demand-for-loanable-funds curves and two supply-of-loanable-funds curves. A graph of i on the vertical axis shows a straight line, D
Figure 3. The figure shows two demand-for-loanable-funds curves and two supply-of-loanable-funds curves. A graph of i on the vertical axis shows a straight line, D 1, decreasing linearly from left to right, a second straight line, D 2, decreasing linearly from left to right to the right of and parallel to D 1, a third straight line, S 1, increasing linearly from left to right, and a fourth straight line, S 2, increasing linearly from left to right to the left and parallel to S 1. Point A is marked on the point of intersection, or the equilibrium point, of S 1 and D 1. Point B is marked on the point of intersection of S 2 and D 1, before Point A. Point C is marked on the point of intersection of S 2 and D 2, above Point A. Point F is marked on the point of intersection of S 1 and D 2, after Point C. Refer to Figure 3. Which of the following movements shows the effects of households decision to save more? A. a movement from Point F to Point A B. a movement from Point A to Point B C. a movement from Point C to Point F D. a movement from Point B to Point C Reset Selection
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