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S 6% D 0 $100 Quantity of loanable funds (billions of dollars) 42. Use the Loanable Funds Figure 29-1. The accompanying graph shows the market

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S 6% D 0 $100 Quantity of loanable funds (billions of dollars) 42. Use the "Loanable Funds" Figure 29-1. The accompanying graph shows the market for loanable funds in equilibrium. Which of the following might produce a new equilibrium interest rate of 8% and a new equilibrium quantity of loanable funds of $150? A. Consumers have increased consumption as a fraction of disposable income. B. Businesses have become more optimistic about the return on investment spending. C. The federal government has a budget surplus rather than a budget deficit. D. There has been an increase in capital inflows from other nations. E. Forecasts for future corporate profits are gloomier than expected

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