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Which of the following determine(s) the level of real interest rates? (I) The savings by households and business firms. (II) The demand for investment funds.

Which of the following determine(s) the level of real interest rates?

(I) The savings by households and business firms.

(II) The demand for investment funds.

(III) The government's fiscal and monitory policies.

(IV) An increase in the government's budget deficit

Select one:

I only

II only

I and III only

I, II, III and IV

None of them have an effect on real interest rates

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