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If the Real Interest Rate Increases from 3 Percent to 5

Question 115

Multiple Choice

If the real interest rate increases from 3 percent to 5 percent,


A) the supply of loanable funds curve will shift rightward.
B) the demand for loanable funds curve will shift rightward.
C) the nominal interest rate will also increase.
D) there will be a movement up along the demand for loanable funds curve.

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