If the Federal Reserve pursues a policy of easy money,the supply of loanable funds will
A) shift to the right, causing the interest rate to fall.
B) shift to the right, causing the interest rate to rise.
C) be unaffected, but the demand for loanable funds will shift to the right.
D) shift to the left, causing the interest rate to rise.
E) shift to the left, causing the interest rate to fall.
Correct Answer:
Verified
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