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Answer to Question #230859 in Macroeconomics for Olu
Question #230859
When government becomes a lender in the loanable funds market
I. The supply of funds increases and the interest rate decreases
ii.The supply of funds increases and the interest rate increases
iii.The supply of loanable funds decreases and the interest rate decreases
iv. The supply of funds decreases and the interest rate increases
I. The supply of funds increases and the interest rate decreases
ii.The supply of funds increases and the interest rate increases
iii.The supply of loanable funds decreases and the interest rate decreases
iv. The supply of funds decreases and the interest rate increases
Expert's answer
I. The supply of funds increases and the interest rate decreases
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