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Refer to the Diagram

Question 145

Multiple Choice

Refer to the diagram. Suppose that the demand for loanable funds is D ₁ and the supply of loanable funds initially is S ₀ . If the supply of loanable funds declines to S ₁, the equilibrium quantity of funds borrowed will A) decrease from G to F. B) increase from E to F. C) increase from B to C. D) decrease from B to A. Refer to the diagram. Suppose that the demand for loanable funds is D ₁ and the supply of loanable funds initially is S ₀ . If the supply of loanable funds declines to S ₁, the equilibrium quantity of funds borrowed will


A) decrease from G to F.
B) increase from E to F.
C) increase from B to C.
D) decrease from B to A.

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