Which combination of events could have caused the equilibrium interest rate to rise and the equilibrium quantity of loanable funds (both borrowed and lent) to fall?
A) A baby boom begins,and investor confidence falls.
B) A baby boom begins,and investor confidence rises.
C) People have lower time preferences,and governments run larger deficits.
D) People have lower time preferences,and capital is more productive.
E) A baby boom begins,and people have higher time preferences.
Correct Answer:
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