A decrease in the price of a good that is measured on the horizontal axis will cause the budget constraint to rotate outward (with a new larger intercept on the horizontal axis)

At market equilibrium

A) shortages are greater than surpluses. B) surpluses are greater than shortages. C) quantity demanded equals quantity supplied. D) demand equals supply.

The real interest rate can be thought of as

A) the price of current consumption relative to future consumption. B) the price of current consumption completely smoothed over a lifetime. C) the price of future consumption smoothed completely over a lifetime. D) the price of current consumption divided by the price of current saving.