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OpenStudy (anonymous):
The effect of increased political risk on the market for loanable funds is to shift the demand curve to the left, decreasing the interest rate and decreasing the equilibrium quantity of loanable funds. shift the supply curve to the left, increasing the interest rate and decreasing the quantity of loanable funds demanded. shift both the demand curve and the supply curve to the left, decreasing both the interest rate and the equilibrium quantity of loanable funds. shift the supply curve to the right, decreasing the interest rate and increasing the quantity of loanble funds demanded.
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