A consumption tax would lead to an increase in the supply of loanable funds and a decrease in real interest rates

Refer to Figure 18-2. Which of the events below cause the shifts in the supply and demand curves in the market for dollars against the British pound shown in the graph above?

A) Interest rates rise in the United States. B) Real income falls in England. C) Real income rises in the United States. D) Interest rates rise in England.

As the number of producers increases, the supply curve ______.

a. begins to resemble a pyramid b. becomes a horizontal line c. becomes smoother d. begins to resemble a staircase