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Explain what the loanable funds model would predict about

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Question: The Home Builders Association of America reports that there was a dramatic increase in new home construction nationwide last month. Separately they report that the median price for a house increased for the 4th month in a row." In both graphical form and in words, explain what the Loanable Funds model would predict about the direction of interest rates.

Reference no: EM133598680

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