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The Demand for Loanable Funds Increases While the Supply of Loanable

Question 114

Multiple Choice

The demand for loanable funds increases while the supply of loanable funds simultaneously decreases.This would cause the


A) equilibrium quantity of loanable funds to decrease and the equilibrium interest rate to increase.
B) equilibrium quantity of loanable funds to increase and the equilibrium interest rate to decrease.
C) quantity of loanable funds to increase,but the effect on the equilibrium interest rate would be uncertain.
D) equilibrium interest rate to increase,but the new equilibrium quantity would be uncertain.
E) equilibrium interest rate to decrease,but the new equilibrium quantity would be uncertain.

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