Which of the following events would lead to an increase in the supply of loanable funds and a decrease in the interest rate?
A) decreases in foreign purchases of domestic financial assets, ceteris paribus
B) decreases in U.S. interest rates relative to those abroad
C) increases in foreign purchases of U.S. financial assets, ceteris paribus
D) increases in U.S. purchases of foreign financial assets, ceteris paribus
Correct Answer:
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