Multiple Choice
Suppose that while households are deciding to increase savings, the demand by firms for investment funds falls. In the market for loanable funds, the real interest rate will _____ and the quantity of loanable funds will _____.
A) rise; fall
B) rise; rise
C) fall; rise, fall, or stay the same
D) rise, fall, or stay the same; rise
Correct Answer:
Verified
Correct Answer:
Verified
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