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What Are the Sources of the Demand for Loanable Funds

question 81

Essay

What are the sources of the demand for loanable funds? What happens to the quantity of loanable funds demanded when the interest rate rises?


Definitions:

Certificates of Deposit

A savings certificate with a fixed maturity date and specified fixed interest rate that is issued by banks and is insured by the Federal Deposit Insurance Corporation (FDIC) up to a certain amount.

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