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Which of the Following Will Happen If the Supply of Loans

Question 39

Multiple Choice

Which of the following will happen if the supply of loans increases?


A) The interest rate will fall, and the quantity of money borrowed will increase.
B) The interest rate will fall, and the quantity of money borrowed will decline.
C) The interest rate will rise, and the quantity of money borrowed will increase.
D) The interest rate will rise, and the quantity of money borrowed will decline.

Correct Answer:

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