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Assume the loanable funds market starts out in equilibrium and then the interest rate increases. What is the result in the loanable funds market?

Assume the loanable funds market starts out in equilibrium and then the interest rate increases. What is the result in the loanable funds market?


A. A surplus of loanable funds develops

B. A shortage of loanable funds develops

C. Both supply and demand shift to the right

D. Both supply and demand shift to the left

Top Answer

the correct answer is, A. A... View the full answer

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