Business will increase current long-term borrowing if they forecast a decrease in interest rates.
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Q5: Holding demand constant, an increase in the
Q6: Holding demand constant, a decrease in the
Q7: Interest rates will move from one equilibrium
Q8: The supply of savings comes from all
Q9: Holding supply constant, an increase in the
Q11: The demand for loanable funds comes from
Q12: The Treasury's major influence through its borrowing
Q13: Holding supply constant, a decrease in the
Q14: An economy with a large share of
Q15: The loanable funds theory states that interest
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