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Interest rates in Hamsterville have fallen and, as a result, the net return to investment projects are higher than before interest rates fell and now
Interest rates in Hamsterville have fallen and, as a result, the net return to investment projects are higher than before interest rates fell and now firms are more willing to take out loans. Which of the following changes would reflect what is described in the statement above? Choose 1 answer: Choose 1 answer: (Choice A) The quantity of loanable funds demanded increased. A The quantity of loanable funds demanded increased. (Choice B) The demand for loanable funds increased. B The demand for loanable funds increased. (Choice C) The supply of money increased. C The supply of money increased. (Choice D) The demand for money increased. D The demand for money increased. (Choice E) The supply of loanable funds increased. E The supply of loanable funds increased
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