Under the Loanable Funds Approach to Explaining and Forecasting Interest

question 90

Multiple Choice

Under the loanable funds approach to explaining and forecasting interest rates,the concept of dishoarding is introduced.Which of the following statements regarding dishoarding is correct?

• A) Dishoarding will occur as interest rates rise.
• B) Dishoarding will occur as interest rates fall.
• C) Dishoarding will change the slope of the demand curve.
• D) Dishoarding is caused by government budget deficits.

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