When interest rates fall
a. firms want to borrow more for new plants and equipment and households want to borrow more for homebuilding.
b. firms want to borrow more for new plants and equipment and households want to borrow less for homebuilding.
c. firms want to borrow less for new plants and equipment and households want to borrow more for homebuilding.
d. firms want to borrow less for new plants and equipment and households want to borrow less for homebuilding.
Answer: a. firms want to borrow more for new plants and equipment and households want to borrow more for homebuilding.
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