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If There Is an Excess Supply of Loanable Funds at a Given

Question 20

Multiple Choice

If there is an excess supply of loanable funds at a given interest rate, then


A) the price of bonds will fall.
B) the price of bonds will rise.
C) the interest rate will rise.
D) the price of bonds may rise or fall depending upon the reasons for the excess supply of loanable funds.

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