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In the Market for Loanable Funds, Which of These Would

Question 148

Multiple Choice

In the market for loanable funds, which of these would cause the equilibrium interest rate to rise, but would have an uncertain impact on the equilibrium quantity unless more detailed information were available about the relative sizes of the shifts?


A) greater job security for employees while there is an advance in technology that would reduce costs if adopted
B) reduced job security for employees while the government increases regulation of business production methods
C) increased tax breaks for saving toward retirement while there are reduced expectations for business profits
D) a surge in the stock market while there is an increase in average household income

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