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An Increase in the Marginal Rate of Return on Bread-Mixing

Question 83

Multiple Choice

An increase in the marginal rate of return on bread-mixing machines would


A) reduce the supply of loanable funds and reduce the equilibrium market interest rate
B) reduce the supply of loanable funds and increase the equilibrium market interest rate
C) increase the supply of loanable funds and reduce the equilibrium market interest rate
D) increase the supply of loanable funds and increase the equilibrium market interest rate
E) increase the demand for loanable funds and increase the equilibrium market interest rate

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