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Use the following to answer questions:
Figure: Loanable Funds Use the following to answer questions: Figure: Loanable Funds   -(Figure: Loanable Funds)  Look at the figure Loanable Funds. Which of the following might produce a new equilibrium interest rate of 8% and a new equilibrium quantity of loanable funds of $150 billion? A) Consumption as a fraction of disposable income increases. B) Businesses become more optimistic about the return on investment spending. C) The federal government has a budget surplus rather than a budget deficit. D) There is an increase in capital inflows from other nations.
-(Figure: Loanable Funds) Look at the figure Loanable Funds. Which of the following might produce a new equilibrium interest rate of 8% and a new equilibrium quantity of loanable funds of $150 billion?


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