Suppose that there is an increase in disposable income and simultaneously an increase in the expected profitability of investment. As a result, the equilibrium real interest rate ________ and the equilibrium quantity of loanable funds ________
A) remains unchanged; increases
B) rises; increases
C) might rise, fall, or remain unchanged; increases
D) falls; increases
E) might rise, fall, or remain unchanged; decreases
C
Economics
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What will be an ideal response?
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