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What impact will this have in terms of the loanable funds model

23 / 01 / 2019 Others

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You read in  The Financial Times a story that explains that market interest rates are increasing due to increased global political tensions. What impact will this have in terms of the loan able funds model?

 story in The New York Times describes how firms are deciding to cut funding of projects and are thus borrowing less. In terms of the loan able funds model, which of the following most likely happened?

show the logic in changes

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