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When the nominal interest rate rises, what impact can we expect on the demand for loanable funds?

A

A decrease in the demand for loanable funds.

B

An increase in the demand for loanable funds.

C

Demand to remain constant for loanable funds.

D

Crowding-out in the loanable funds market.

E

Not enough information is provided to determine the impact on demand for loanable funds.

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