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If the Real Interest Rate Rises from 3 Percent to 5

Question 49

Multiple Choice

If the real interest rate rises from 3 percent to 5 percent,


A) the nominal interest rate falls.
B) the demand for loanable funds curve shifts rightward.
C) there is a movement up along the demand for loanable funds curve.
D) the supply of loanable funds curve shifts rightward.
E) there is a movement down along the supply of loanable funds curve.

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