In the loanable funds market, which statement is false?
A) The interest rate is the price of loanable funds.
B) An increase in demand for loanable funds causes the interest rate to rise.
C) An increase in consumer savings causes the interest rate to rise.
D) A decrease in the interest rate causes business borrowing to rise.
E) A decrease in the supply of loanable funds causes the interest rate to rise.
Correct Answer:
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