A decrease in the expected rate of return is likely to _____
A) increase the quantity of loanable funds demanded and cause a downward movement along the demand for loanable funds curve.
B) decrease the quantity of loanable funds demanded and cause a downward movement along the demand for loanable funds curve.
C) increase the quantity of loanable funds demanded and cause an upward movement along the demand for loanable funds curve.
D) increase the quantity of loanable funds supplied and cause a downward movement along the supply of loanable funds curve.
E) increase the quantity of loanable funds supplied and cause an upward movement along the supply of loanable funds curve.
Correct Answer:
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