Multiple Choice
As government adopts a contractionary monetary policy:
A) the demand for loanable funds increases causing interest rates to rise.
B) the demand for loanable funds decreases causing interest rates to fall.
C) the supply of loanable funds increases causing interest rates to fall.
D) the supply of loanable funds does not change and interest rates rise.
E) the supply of loanable funds decreases causing interest rates to rise.
Correct Answer:
Verified
Correct Answer:
Verified
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