Refer to Figure 10-6. The loanable funds market is in ...

[nenivikky]

Refer to Figure 10-6. The loanable funds market is in equilibrium, as shown in the figure above.
 
  As a result of an increase in the government budget deficit, the ________ for loanable funds will ________, thereby ________ the equilibrium real interest rate and ________ the equilibrium quantity of loanable funds.
  A) supply; rise; decreasing; increasing B) demand; fall; decreasing; decreasing
  C) demand; rise; increasing; decreasing D) supply; fall; increasing; decreasing

Question 2

What is a zero-sum game? Can you think of any zero-sum games in real life?
 
  What will be an ideal response?

[nathang24]

Answer to Question 1

D

Answer to Question 2

A zero-sum game is one in which one player's loss is another's gain, so the sum of the payoffs of both the players is zero. Zero-sum games occur when two or more firms are competing for consumers. For example, when you buy a Toyota Prius, Toyota's gain is another car manufacturer's loss. Poker is a zero-sum game; my winnings are your losses.

[nenivikky]

Thanks for the timely response, appreciate it

[jackie]

Wow, this really help