Multiple Choice
Refer to the diagram. Suppose that the demand for loanable funds is D₀ and the supply of loanable funds initially is S₀ . If the supply of loanable funds declines to S₁, the equilibrium interest rate will
A) decrease from G to F.
B) increase from E to F.
C) increase from B to C.
D) increase from F to G.
Correct Answer:
Verified
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