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As the Economy Enters a Strong Expansion, Then Firms' Demand

Question 65

Multiple Choice

As the economy enters a strong expansion, then firms' demand for loanable funds


A) increases because profit expectations will increase.
B) decreases due to lower profit expectations.
C) increases due to increases in the nominal interest rate.
D) decreases due to decreases in the nominal interest rate.
E) increases due to increases in the real interest rate.

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