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    Financial Markets and Institutions Study Set 7
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    Exam 2: Determination of Interest Rates
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    If Economic Expansion Is Expected to Decrease, the Demand for Loanable
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If Economic Expansion Is Expected to Decrease, the Demand for Loanable

Question 17

Question 17

Multiple Choice

If economic expansion is expected to decrease, the demand for loanable funds should ____ and interest rates should ____. ​


A) increase; increase
B) increase; decrease
C) decrease; decrease
D) decrease; increase

Correct Answer:

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