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Let's say that due to political turmoil in the US and abroad, people all over the world start to lose confidence in American securities. Both

Let's say that due to political turmoil in the US and abroad, people all over the world start to lose confidence in American securities. Both Americans and foreigners prefer to do their financial investment elsewhere.

As a result, we'd expect

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the supply of bonds to shift to the left and the real interest rate to rise

the supply of loanable funds to shift to the left and the real interest rate to rise

the supply of loanable funds to shift to the right and the real interest rate to fall

the supply of bonds to shift to the right and the real interest rate to fall

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