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Allison needs to borrow money to buy a home. Suppose that the saving rate in the country is expected to decrease. Assuming nothing else changes,

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Allison needs to borrow money to buy a home. Suppose that the saving rate in the country is expected to decrease. Assuming nothing else changes, this means that if Allison borrows now, her cost of borrowing money is expected to due to the following factor: Falling interest rates. Increasing preferences for current consumption. Increasing preferences for future consumption. Which of the following events could increase the cost of money? Check all that apply. The federal deficit increases The Federal Reserve purchases Treasury securities held by banks Inflation declines Inflation rises

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