Which of the following is most likely to lead to an increase in the interest rate, based on the market for loanable funds?
A) Baby boomers retiring and reducing their savings.
B) A decrease in government infrastructure spending.
C) Firms "hoarding" cash to avoid paying corporate income taxes.
D) Consumers becoming increasingly worried about their jobs.
E) A decrease in the expected profitability of new projects.
Correct Answer:
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