The nominal rate of interest is 4% and the anticipated rate of inflation is 5%. What is the real rate of interest?

In 2008, Australia had a government budget surplus of $21.7 billion. This budget surplus shifts the demand for loanable funds curve ________

A) leftward and lowers the real interest rate. B) leftward and creates a crowding-out effect. C) rightward and creates a crowding-out effect. D) rightward and creates a Ricardo-Barro effect.

An increase in demand accompanied by a simultaneous decrease in supply will have what effect on equilibrium?

a. Price will either rise or fall; quantity will fall. b. Price will rise; quantity will fall. c. Price will rise; quantity will either rise or fall. d. Price will either rise or fall; quantity will rise. e. Price will fall; quantity will either rise or fall.