The Peopleʹs Bank of China announced that it was lowering by 1.08 percentage points the one -year lending rate in response to the slowdown in the Chinese economy. This rate is the Chinese equivalent of the federal funds rate in the United States.
This policy__________ the supply of loanable funds. As a result, the long -term real interest rate
, and planned expenditures__________ .
A) decreases; increases; increase
B) increases; decreases; increase
C) increases; increases; increase
D) decreases; decreases; decrease
Correct Answer:
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