Multiple Choice
As a result of higher expected inflation,
A) the demand and supply curves for loanable funds both shift to the right and the equilibrium interest rate usually rises.
B) the demand and supply curves for loanable funds both shift to the left and the equilibrium interest rate usually falls.
C) the demand curve for loanable funds shifts to the right, the supply curve for loanable funds shifts to the left, and the equilibrium interest rate usually rises.
D) the demand curve for loanable funds shifts to the left, the supply curve for loanable funds shifts to the right, and the equilibrium interest rate usually rises.
Correct Answer:
Verified
Correct Answer:
Verified
Q18: As wealth increases in the economy, we
Q19: In an effort to increase government revenue,
Q20: If there is an excess supply of
Q21: In an open economy, desired domestic lending<br>A)must
Q22: The bond supply curve slopes up because<br>A)interest
Q24: As wealth increases in the economy, savers
Q25: Which of the following would NOT cause
Q26: If the equilibrium interest rate in the
Q27: If there is an excess supply of
Q28: The Federal Reserve issues a report indicating