Multiple Choice
Suppose that consumers decide to save less and spend more. What effect would this have in the market for loanable funds?
A) It will increase interest rates and the quantity of funds lent will rise.
B) It will decrease interest rates and the quantity of funds lent will rise.
C) It will increase interest rates and the quantity of funds lent will fall.
D) It will decrease interest rates and the quantity of funds lent will fall.
Correct Answer:
Verified
Correct Answer:
Verified
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