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QUESTION 3 According to Loanable Funds Theory, if interest rates decrease, which of the following can be expected? Municipal government demand for loanable funds will

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QUESTION 3 According to Loanable Funds Theory, if interest rates decrease, which of the following can be expected? Municipal government demand for loanable funds will decrease, though US government demand will not change. Business demand for loanable funds will decrease, but not as much as will household demand. Household demand for loanable funds will increase, but not as much as will US government demand. Municipal government demand for loanable funds will increase, but not as much as will household demand. US government demand for loanable funds will decrease, though municipal government demand will not change. QUESTION 4 Which of the following would cause the required rate of return on a security to move in the opposite direction of the others? an increase in the time to maturity reduction in the taxes associated with money earned on the security decrease in the risk free rate increase in liquidity

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