Using the accompanying diagram, explain what will happen to the market for loanable funds when there is
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Using the accompanying diagram, explain what will happen to the market for loanable funds when there is a fall of 2 percentage points in the expected future inflation rate. How will the change in the expected future inflation rate affect the equilibrium quantity of loanable funds?
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° a Quantity of loanable funds Krugman/Wells, Macroeconomics, Se, © 2018 Worth Publishers
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