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Four Reasons Financial Intermediaries Fail
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Knowledge Check
Question 1 of 6
If savers don’t feel safe putting their money in banks or buying bonds, which of the following best summarizes what’s happening in the market for loanable funds?
Supply of savings falls and the interest rate falls.
Supply of savings falls and the interest rate rises.
Demand for savings falls and the interest rate falls.
Demand for savings falls and the interest rate rises.
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Principles of Macroeconomics
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