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content area top Part 1 G-20 leaders look to shake off lingering economic troubles For the world economy to emerge stronger from the global financial
content area top Part 1 G-20 leaders look to shake off lingering economic troubles For the world economy to emerge stronger from the global financial crisis, experts say that savings by the United States, investment by Japan, and consumption by China will all have to increase. Source: USA Today, September 23, 2009 Explain how the experts' advice will affect the market for loanable funds in the United States, in Japan, and in China. Question content area bottom Part 1 The experts' advice would _______ loanable funds in the United States and _______ loanable funds in Japan. A. decrease the demand for; increase the demand for B. increase the supply of; increase the supply of C. increase the supply of; decrease the supply of D. increase the supply of; increase the demand for Part 2 The experts' advice would decrease the _______ loanable funds in China because when consumption increases, _______. A. supply of; saving decreases B. demand for; investment decreases C. demand for; saving decreases D. supply of; income decreases
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