The demand and supply of loanable funds decrease simultaneously.This would cause the equilibrium
A) quantity of loanable funds to decrease and the equilibrium interest rate to increase.
B) quantity of loanable funds to decrease,but the effect on the equilibrium interest rate would be uncertain.
C) quantity of loanable funds to increase,but the effect on the equilibrium interest rate would be uncertain.
D) interest rate to increase,but the new equilibrium quantity would be uncertain.
E) interest rate to decrease,but the new equilibrium quantity would be uncertain.
Correct Answer:
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