In the above figure, the firm will shut down if quantity falls below

Which of the following statements is true?

A) An excess demand for credit exerts an upward pressure on the real rate of interest. B) At rates of interest below the equilibrium rate, there is an excess supply of credit. C) An excess supply of credit exerts an upward pressure on the real rate of interest. D) At rates of interest above the equilibrium rate, there is an excess demand for credit.

An increase in consumption, investment, or net exports caused by a decrease in government purchases is known as

A) crowding in. B) a closed economy. C) crowding out. D) demand-side effects.