Multiple Choice
The equilibrium rate of interest as determined in the loanable funds theory of interest will rise if:
A) The supply of loanable funds increases with the demand curve unchanged
B) The demand for loanable funds declines with supply unchanged
C) The supply of loanable funds is unchanged but demand increases
D) The demand for loanable funds is unchanged while the supply decreases
E) None of the above
Correct Answer:
Verified
Correct Answer:
Verified
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