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The loanable funds theory can best be described as involving: (Check all that apply) a. Using investor risk-aversion to infer an appropriate interest rate. b.

The loanable funds theory can best be described as involving: (Check all that apply)

a. Using investor risk-aversion to infer an appropriate interest rate.

b. Credit risk which affects the demand for funds.

c. The legal frictions that can encourage or discourage borrowing.

d. The supply and demand for funds.

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