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If There Is an Increase in the Expected Inflation Rate

Question 101

Multiple Choice

If there is an increase in the expected inflation rate, then,


A) the supply and demand for loanable funds will decrease.
B) the supply and demand for loanable funds will increase.
C) the supply of loanable funds will decrease, and the demand for loanable funds will increase.
D) the supply of loanable funds will increase, and the demand for loanable funds will decrease.

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