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According to the loanable funds theory, equilibrium interest rates and quantity of funds are the result of matching supply and demand for funds (see the

According to the loanable funds theory, equilibrium interest rates and quantity of funds are the result of matching supply and demand for funds (see the figure).Suppose that a monetary policy expansion shifts only the supply curve (the demand curve remains constant). What can you say about the new equilibrium interest rate and quantity of funds?

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