If supply is upward-sloping and demand is downward sloping, what happens to the equilibrium real risk-free interest rate and quantity of real loanable funds per time period if there is an increase of the real money supply and an increase in the government's budget deficit?
a. The real risk-free interest rate falls and the quantity per time period rises.
b. The real risk-free interest rate is uncertain and the quantity per time period rises.
c. The real risk-free interest rate is rises and the quantity per time period is uncertain.
d. The real risk-free interest rate does not change and the quantity per time period falls.
e. The real risk-free interest rate is uncertain and the quantity per time period is uncertain.
.B
You might also like to view...
A firm reaches a break-even point (normal profit position) where:
A. marginal revenue cuts the horizontal axis. B. marginal cost intersects the average variable cost curve. C. total revenue equals total variable cost. D. total revenue and total cost are equal.
On average, since 1900 the population of the United States has grown by roughly ________ percent per year.
A. 3 B. 6 C. 1 D. 9