The Treasury's major influence through its borrowing to finance federal deficits is on the supply rather than demand for loanable funds.
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Q7: Interest rates will move from one equilibrium
Q8: The supply of savings comes from all
Q9: Holding supply constant, an increase in the
Q10: Business will increase current long-term borrowing if
Q11: The demand for loanable funds comes from
Q13: Holding supply constant, a decrease in the
Q14: An economy with a large share of
Q15: The loanable funds theory states that interest
Q16: The interest rate is the basic price
Q17: Equilibrium interest rate is the tax rate
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