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The Supply Curve of Loanable Funds Is Upsloping Because

Question 195

Multiple Choice

The supply curve of loanable funds is upsloping because


A) businesses find more investments to be profitable at low interest rates than at high interest rates.
B) government budget deficits vary inversely with the equilibrium interest rate.
C) households are willing to save more at high interest rates than they are at low interest rates.
D) banks lend more at low interest rates than they do at high interest rates.

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