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Figure 5-2 -Which of the Following Best Describes the Diagram of Figure

Question 5

Multiple Choice

Figure 5-2
Figure 5-2 -Which of the following best describes the diagram of Figure 5-2? A) The demand for loanable funds decreased. This in turn decreased the interest rate and increased the quantity supplied of loanable funds. B) The supply of loanable funds increased. This in turn increased the interest rate. C) The supply of loanable funds increased. In turn, interest rates decreased and the quantity demanded of loanable funds increased. D) The interest rate fell, causing an increase in the supply of loanable funds.
-Which of the following best describes the diagram of Figure 5-2?


A) The demand for loanable funds decreased. This in turn decreased the interest rate and increased the quantity supplied of loanable funds.
B) The supply of loanable funds increased. This in turn increased the interest rate.
C) The supply of loanable funds increased. In turn, interest rates decreased and the quantity demanded of loanable funds increased.
D) The interest rate fell, causing an increase in the supply of loanable funds.

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