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The Substantial Decline in Interest Rates During the Credit Crisis

Question 43

Multiple Choice
The substantial decline in interest rates during the credit crisis is attributed to which of the following changes in the market for loanable funds?
A) an increase in both the supply of and the demand for loanable funds
B) a decrease in both the supply of and the demand for loanable funds
C) a decrease in the supply of loanable funds and an increase in the demand for loanable funds
D) an increase in the supply of loanable funds and a decrease in the demand for loanable funds

The substantial decline in interest rates during the credit crisis is attributed to which of the following changes in the market for loanable funds?


A) an increase in both the supply of and the demand for loanable funds
B) a decrease in both the supply of and the demand for loanable funds
C) a decrease in the supply of loanable funds and an increase in the demand for loanable funds
D) an increase in the supply of loanable funds and a decrease in the demand for loanable funds

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