Question

If the equilibrium interest rate decreases and the curve of funding supplied shifts to the right and downwards, then the impact on spending will

a.

increase in near term

b.

decrease in near term

c.

increase in long term

d.

decrease in long term

Answer: (b).decrease in near term

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Q. If the equilibrium interest rate decreases and the curve of funding supplied shifts to the right and downwards, then the impact on spending will

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