When you purchase school supplies at the book store using cash, you are using money as a medium of exchange

In the figure above, the SLF curve is the supply of loanable funds curve and the PSLF curve is the private supply of loanable funds curve

Given these curves, there is a government budget ________ and therefore the real interest rate is ________ than it would be otherwise. A) deficit; lower B) surplus; lower C) deficit; higher D) surplus; higher E) deficit; not different

If quantity demanded increases at all possible prices, demand has

A) increased. B) decreased C) remained the same; only quantity demanded has changed. D) remained the same; however, the curve has become more stee