An economy is expected to produce higher profits for business owners at the same time that the country's stock market surges during the recovery phase in the country's business cycle. What changes can be expected in the country's market for loanable funds?
A) an increase in demand and a decrease in supply
B) a decrease in demand and an increase in supply
C) decreases in both demand and supply
D) increases in both demand and supply
Correct Answer:
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