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Question
If the real interest rate falls, there isA) an upward movement along the supply of loanable funds curve.
B) a downward movement along the supply of loanable funds curve.
C) a rightward shift of the supply curve of loanable funds and no shift in the demand for loanable funds curve.
D) a leftward shift of the supply of loanable funds curve and no shift in the demand for loanable funds curve.
E) a leftward shift of the supply of loanable funds curve and a rightward shift in the demand for loanable funds curve.
Answer
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