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If Banks Become More Willing to Make Loans, the Aggregate

Question 20

Multiple Choice

If banks become more willing to make loans, the aggregate demand curve will


A) shift to the left, and the real interest rate will fall.
B) shift to the left, and the real interest rate will rise.
C) shift to the right, and the real interest rate will fall.
D) shift to the right, and the real interest rate will rise.

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