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Demand for and supply of loanable funds

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Reference no: EM131326188

When the money supply increases, it could lead to various effects upon the demand for and supply of loanable funds, and thus the market interest rate. Which effect is consistent with an increase in demand for loanable funds and a decrease in the supply of loanable funds?

1. The Liquidity Effect

2. The Income Effect

3. The Price Level Effect

4. The Expectations Effect

Reference no: EM131326188

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