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AP® Macroeconomics

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Moderate

Loanable Funds Borrowing Activities of Business

APMACR-GDGET1

What is the main reason businesses borrow in the loanable funds market?

A

To pay workers.

B

To pay taxes.

C

To increase capital goods stock.

D

To speculate in the stock market.

E

To demonstrate a good credit rating to the general public.