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When a bank has excess reserves, it can choose to turn its reserves into loans for consumers and businesses. Generally speaking, when banks increase the

When a bank has excess reserves, it can choose to turn its reserves into loans for consumers and businesses. Generally speaking, when banks increase the number of loans available, interest rates will ________________ (choose 1: rise or fall) and the quantity of loans will ____________ (choose 1: rise or fall) . When more households and businesses take out loans, __________________ (choose 1: investment or consumption) spending rises.

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