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Suppose the Interest Rate Falls,and the Quantity of Money Borrowed

Question 41

Multiple Choice

Suppose the interest rate falls,and the quantity of money borrowed (and lent) increases.Which of the following could have caused this to occur?


A) A decrease in the supply of loans to the lending market.
B) A decrease in the demand for loans in the lending market.
C) An increase in the supply of loans to the lending market.
D) An increase in the demand for loans in the lending market.

Correct Answer:

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