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2-Which is not correct? Government demand is said to be interest inelastic so sensitive to interest rates. Expenditures and tax policies are independent of the
2-Which is not correct?
Government demand is said to be interest inelastic so sensitive to interest rates. Expenditures and tax policies are independent of the level of interest rates. | ||
The Loanable Funds Theory suggests that the market interest rate is determined by the factors that control supply of and demand for loanable funds. | ||
By affecting the supply of loanable funds, the Feds monetary policy affects interest rates. | ||
There is inverse relationship between the interest rate and the quantity of loanable funds demanded |
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