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QUESTION 5 When business firms become more optimistic about the state of the economy, the interest rate _____ and the quantity of borrowing and lending

QUESTION 5

  1. When business firms become more optimistic about the state of the economy, the interest rate _____ and the quantity of borrowing and lending _____.

    1.

    increases; increases

    2.

    decreases; increases

    3.

    decreases; decreases

    4.

    increases; decreases

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