Multiple Choice
The following figure plots real interest rate against quantity of credit.
-Refer to the figure above.Assume that the loanable funds market initially is in equilibrium at point D.Why might the equilibrium move to point C?
A) Increase of the interest rate
B) Increased business confidence
C) Decreased business confidence
D) Decrease of the value of the U.S. dollar
Correct Answer:
Verified
Correct Answer:
Verified
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