Multiple Choice
Which of the following would be most likely to increase the supply of loanable funds and lead to low interest rates?
A) Expansionary monetary policy that resulted in high rates of inflation.
B) Constant policy shifts that generate uncertainty and reduce investment.
C) Demographic shifts that increase the number of people in age categories with high saving rates relative to the number in age categories with a strong demand for loanable funds.
D) Large budget deficits that push the government debt to GDP ratio to a high level.
Correct Answer:
Verified
Correct Answer:
Verified
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