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(E) Aggregate demand will increase. 41. If investors feel that business conditions will deteriorate in the future, the demand for loans and real interest rate

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(E) Aggregate demand will increase. 41. If investors feel that business conditions will deteriorate in the future, the demand for loans and real interest rate in the loanable funds market will change in which of the following ways in the short run? Demand for Loans Real Interest Rate Increase Increase (B) Increase Decrease (C) Decrease Increase (D) Decrease Decrease (E) Decrease Not change

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