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To make the financial markets safer, in 2018, the Canadian government introduced new lending guidelines for federally regulated banks. The guidelines, known as B20, are

To make the financial markets safer, in 2018, the Canadian government introduced new lending guidelines for federally regulated banks. The guidelines, known as B20, are aimed at curbing risky lending amid rising household indebtedness and high home prices in some markets. Explain the B20 guidelines and using the supply and demand for loanable funds model to analyze the effects of the policy on savings, investment, and the interest rate.

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