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3) Explain (in no more than two paragraphs for each) which of the following statements are true or false. A. An increase in interest rates
3) Explain (in no more than two paragraphs for each) which of the following statements are true or false.
A. An increase in interest rates increases the demand loanable funds
.B. A higher level of wealth causes the demand for loanable funds to increase and interest rates to fall.
C. If interest rates increase, the value of a fixed income contract decreases and vice versa.
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