Answered

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Which one of the following would be expected to occur if Canadians saved a greater percentage of their income?
a. The supply of loanable funds would shift to the right, and real interest rate would rise.
b. The supply of loanable funds would shift to the right, and real interest rate would fall.
c. The demand for loanable funds would shift right, and the real interest rate would rise.
d. The demand for loanable funds would shift right, and the real interest rate would fall.

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