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What Effect Does a Fall in the Real Interest Rate

Question 105

Multiple Choice

What effect does a fall in the real interest rate have on the quantity of loanable funds?


A) It increases the quantity of loanable funds demanded.
B) It decreases the quantity of loanable funds demanded.
C) It increases the quantity of loanable funds supplied.
D) It does not affect the quantity of loanable funds supplied.

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