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Suppose the market for loanable funds is in equilibrium. What would happen in the market for loanable funds, other things the same, if the Congress and President increased the maximum contribution limits to 401(k) and 403(b) tax-deferred retirement accounts?a. the interest rate and quantity of loanable funds would increaseb. the interest rate and quantity of loanable funds would decrease.c. the interest rate would increase and the quantity of loanable funds would decrease.d. the interest rate would decrease and the quantity of loanable funds would increase.
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