Military spending is a good example of an automatic stabilizer

A decrease in the real interest rate leads to

A) an increase in investment demand so that the demand for loanable funds curve shifts rightward. B) a fall in the capital stock. C) an increase in the expected profit. D) a movement downward along the demand for loanable funds curve.

If you buy a futures contract for U.S. Treasury bills and on the delivery date the interest rate on T-bills is lower than you expected, you will have

A) lost money on your long position. B) gained money on your long position. C) lost money on your short position. D) gained money on your short position.