Which of the following can cause interest rates to rise in credit markets?
A. A decrease in the federal government's demand for credit
B. An increasing the supply of credit resulting from higher foreign saving in the United States
C. A decrease in the supply of loanable funds resulting from Federal Reserve open market sales of government securities to banks
D. A decrease in demand for credit as consumers repay debt and cut back on new borrowing
Answer: C
Microeconomics
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