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In the standard loanable funds market graph, a decrease in the supply of loanable funds (leftward shift): a. would cause a decrease in the real
In the standard loanable funds market graph, a decrease in the supply of loanable funds (leftward shift):
a. would cause a decrease in the real interest rate.
b. could be caused by a tax decrease on individuals on interest earned from savings accounts.
c. could be caused by a tax break for businesses on investment spending.
d. would cause an increase in the real interest rate.
Explain your answer.
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