Question A: Given the preceding information, determine how the demand for and the supply of loanable funds would be affected, and determine the future direction of U.S. interest rates. Question B: You can obtain a one-year loan at a fixed-rate of 8 percent or a floating-rate loan that is currently at 8 percent but would be revised every month in accordance with general interest rate movements. Which type of loan is more appropriate based on the informati …
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