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The Equilibrium Interest Rate

Question 28

Multiple Choice

The equilibrium interest rate


A) equates the aggregate demand for loanable funds with the aggregate supply of loanable funds.
B) equates the elasticity of the aggregate demand for and supply of loanable funds.
C) decreases as the aggregate supply of loanable funds decreases.
D) increases as the aggregate demand for loanable funds decreases.

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