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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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