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Which of the Following Would Be Most Likely to Result

Question 2

Multiple Choice

Which of the following would be most likely to result in low real interest rates over a lengthy period of time?


A) Expansionary monetary policy.
B) Large budget deficits.
C) A savings glut as the result of higher sustained  oil prices and the expansion in the revenues of oil producers.
D) An increase in the share of the population under age 50, a phase of life during which people borrow heavily to purchase "big ticket" items like houses and cars.

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