An increase in domestic borrowing today will lead to an increase in the supply of loanable funds and an increase in domestic interest rates.

Name: An increase in domestic borrowing today will lead to an increase in the supply of loanable funds and an increase in domestic interest rates.
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An increase in domestic borrowing today would lead to an increase in the demand for loanable funds, not the supply, and this increased demand typically leads to an increase in interest rates.

An Increase in Domestic Borrowing Today Will Lead to an Increase