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    Exam 13: An Introduction to Interest Rate Determination and Forecasting
  5. Question
    If There Is an Excess Demand for Loanable Funds at a Given
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If There Is an Excess Demand for Loanable Funds at a Given

Question 5

Question 5

Multiple Choice

If there is an excess demand for loanable funds at a given interest rate:


A) bond prices will increase.
B) bond prices will decrease.
C) the interest rate will rise.
D) bond prices may rise or fall, depending on the cause for excess funds.

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