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An Increase in the Real Interest Rate Results in Which

Question 177

Multiple Choice

An increase in the real interest rate results in which of the following?


A) an increase in the demand for loanable funds
B) a decrease in the demand for loanable funds
C) an increase in the quantity of loanable funds supplied
D) a decrease in the supply of loanable funds
E) Both B and C will occur as a result of an increase in the real interest rate.

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