Multiple Choice
As a result of the government's rescue of financial firms and the auto industry in 2008, which of the following occurred?
i. The government's demand for loanable funds increased the real interest rate.
ii. Investment expenditures were crowded out.
iii. The supply of loanable funds curve shifted leftward.
A) i and ii.
B) i, ii and iii.
C) i only.
D) ii only.
E) ii and iii.
Correct Answer:
Verified
Correct Answer:
Verified
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