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When Saving (The Supply of Loanable Funds) Increases as the Interest

Question 138

Multiple Choice

When saving (the supply of loanable funds) increases as the interest rate increases, an increase in investment demand results in a ______ interest rate and ______ in the quantity of investment.


A) higher; no change
B) higher; an increase
C) lower; no change
D) lower; an increase

Correct Answer:

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