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Which of the Following Statements Describes a Role Performed by the Rate

Question 11

Multiple Choice

Which of the following statements describes a role performed by the rate of interest in the economy?


A) Facilitates that current savings will flow into investment to promote economic growth
B) Allocates the available supply of credit, generally providing loanable funds to projects bearing the highest expected returns
C) Brings the nation's money supply into balance with the demand for money
D) Serves as a tool of government economic policy
E) All of the above represent roles of the rate of interest in the economy

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