please explain this savings and investment graph, thanks!
Q15. Consider the following savings-investment diagram. 1' Which [if any) ofthe following statements might plausibly explain the changes observed above? i. Rising demand for real estate increases land prices and thus the value of household wealth, which is accompanied by increasing investment into property by businesses. ii. Rising unemployment reduces household confidence and rms invest more to export overseas. iii. Households and firms are convinced the economy is going into a boom. iv. Households and firms become less optimistic in the wake of a nancial crisis. A) i. is plausible, ii. is plausible, iii is plausible, iv. is plausible B) i. is plausible, ii is plausible, iii. is plausible, iv. is not plausible C) i. is plausible, ii is plausible, iii. is not plausible, iv. is plausible D) i. is plausible, ii is plausible, iii. is not plausible, iv. is not plausible E) i. is plausible, ii is not plausible, iii. is plausible, iv. is plausible F] i. is plausible, ii is not plausible, iii. is plausible, iv. is not plausible G) i. is plausible, ii is not plausible, iii. is not plausible, iv. is plausible H) i. is plausible, ii is not plausible, iii. is not plausible, iv. is not plausible I) i. is not plausible, ii. is plausible, iii. is plausible, iv. is plausible) i. is not plausible, ii. is plausible, iii. is plausible, iv. is not plausible K) i. is not plausible, ii. is plausible, iii. is not plausible, iv. is plausible L) i. is not plausible, ii. is plausible, iii. is not plausible, iv. is not plausible M) i. is not plausible, ii. is not plausible, iii. is plausible, iv. is plausible N) i. is not plausible, ii. is not plausible, iii. is plausible, iv. is not plausible O) i. is not plausible, ii. is not plausible, iii. is not plausible, iv. is plausible P) i. is not plausible, ii. is not plausible, iii. is not plausible, iv. is not plausible Answer: F Source: This question comes from the chapters 3 8; 4 of the textbook. Explanation. The diagram shows a decrease in savings and an increase in investment. Option ii is false as it shows an increase in both savings and investment. Option iv is false as it shows a decrease in both savings and investment. Option i is true as a rise in assets leads to a rise in