Other Things the Same,if the Government Decreases Transfer Payments,then

question 189

Multiple Choice

Other things the same,if the government decreases transfer payments,then

• A)both the interest rate and the equilibrium quantity of loanable funds fall.
• B)both the interest rate and the equilibrium quantity of loanable funds rise.
• C)the interest rate rises and the equilibrium quantity of loanable funds falls.
• D)the interest rate falls and the equilibrium quantity of loanable funds rises.

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