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The Supply Curve of Loanable Funds Slopes Up Because

Question 39

Multiple Choice

The supply curve of loanable funds slopes up because


A) at higher bond prices more loanable funds will be supplied.
B) higher interest rates reduce the inflation rate.
C) an increase in the interest rate makes lenders more willing and able to supply more funds.
D) a decrease in the interest rate makes lenders more willing and able to supply more funds.

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