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During the Iraq War, the U.S. government continued to borrow funds and yet the interest rate was ...

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During the Iraq War, the U.S. government continued to borrow funds and yet the interest rate was ...

During the Iraq War, the U.S. government continued to borrow funds and yet the interest rate was steady or slightly declined. What could explain this?
A) The U.S. crowded out private saving.
B) The U.S. crowded out private borrowing.
C) The supply of loanable funds increased by a greater proportion than demand increased.
D) The supply of loanable funds increased by a smaller proportion than demand increased.

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Microeconomics

Edition: 6^th

Author: Perloff

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