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If market participants expected that inflation would increase, supply of loanable funds would ______, demand for loanable funds would _____ and as a result, the
If market participants expected that inflation would increase, supply of loanable funds would ______, demand for loanable funds would _____ and as a result, the equilibrium interest rate would ______________.
A) Expand; Increase; Decrease | ||
B) Contract; Increase; Increase | ||
C) Expand; Increase; Increase | ||
D) Contract; Increase; Decrease |
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