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QUESTION

If private savings increase: The supply of loanable funds will decrease, interest rates will increase and investment will decrease.

If private savings increase:

The supply of loanable funds will decrease, interest rates will increase and investment will decrease.

The supply of loanable funds will increase, interest rates will decrease and investment will increase.

The supply of loanable funds will increase, interest rates will decrease and investment will decrease.

The supply of loanable funds will decrease, interest rates will decrease and investment will increase.

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