Multiple Choice
A decrease in excess reserves causes the:
A) supply of loanable funds to increase, leading to lower interest rates.
B) demand for loanable funds to decrease, leading to lower interest rates.
C) supply of loanable funds to decrease, leading to higher interest rates.
D) demand for loanable funds to increase, leading to higher interest rates.
Correct Answer:
Verified
Correct Answer:
Verified
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