Multiple Choice
Suppose a country has a larger increase in debt in 2014 than it had in 2013.Then other things the same,
A) the supply of loanable funds shifts rightward and the interest rate falls.
B) the supply of loanable funds shifts leftward and the interest rate rises.
C) the demand for loanable funds shifts leftward and the interest rate falls.
D) the demand for loanable funds shifts rightward and the interest rate rises.
Correct Answer:
Verified
Correct Answer:
Verified
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