If consumers expect to have shorter life expectancy and desire to save less, then the
A) demand for loanable funds will increase, and the equilibrium interest rate will increase.
B) demand for loanable funds will decrease, and the equilibrium interest rate will decrease.
C) supply of loanable funds will decrease, and the equilibrium interest rate will increase.
D) the supply of loanable funds will increase, and the equilibrium interest rate will decrease.
Correct Answer:
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