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Heal interest rate Demand 0 L2 .'_1 Loanable funds (billions of dollars per year) Which of the following is consistent with the graph depicted above?
Heal interest rate Demand 0 L2 .'_1 Loanable funds (billions of dollars per year) Which of the following is consistent with the graph depicted above? 0 an increase in tax revenues collected by the government. 0 an increase in the proportion of income after net taxes used for consumption. 0 an increase in household income. 0 an increase in transfer payments to households. Real interest rate 6% 5 4 Co N 30 60 90 120 150 180 Quantity of loanable funds (millions of dollars) D and S The loanable funds market is in equilibrium, as shown in the figure above. As a result of an increase in the government budget deficit, the _ for loanable funds will _, thereby . the equilibrium real interest rate and the equilibrium quantity of loanable funds. O a) demand; rise; increasing; decreasing O b) demand; fall; decreasing; decreasing O c) supply; rise; decreasing; increasing O d) supply; fall; increasing; decreasing
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