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If There Is a Shortage of Loanable Funds

Question 117

Multiple Choice

If there is a shortage of loanable funds,


A) the demand for loanable funds will shift right so the interest rate rises.
B) the supply of loanable funds will shift left so the interest rate falls.
C) there will be no shifts of the curves, but the interest rate rises.
D) there will be no shifts of the curves, but the interest rate falls.

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