If the U.S. government retires the national debt, then A) a shift in
If the U.S. government retires the national debt, then
A) a shift in the demand of loanable funds will cause interest rates to rise.
B) a shift in the demand of loanable funds will cause interest rates to fall.
C) a shift in the supply for loanable funds will cause interest rates to rise.
D) a shift in the supply for loanable funds will cause interest rates to fall.
E) there will be an excess supply for loanable funds.
ANSWER
B
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