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4. Equilibrium interest rates are determined by the intersection of the supply and demand curves for loanable funds. Economic growth and inflation both have profound

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4. Equilibrium interest rates are determined by the intersection of the supply and demand curves for loanable funds. Economic growth and inflation both have profound influences on these supply and demand curves. Company P is a manufacturer. Investor Six is a household. a. What is the likely impact of strengthening economic growth on Company P's borrowing behavior? Why? b. What is the likely impact of strengthening economic growth on Investor Six's lending behavior? Why? C. What is the ultimate impact of strengthening economic growth on interest rates? d. What is the likely impact of rising inflation on Company P's borrowing behavior? Why? e. What is the likely impact of rising inflation on Investor Six's lending behavior? Why? f. What is the ultimate impact of rising inflation on interest rates

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