An increase in the real interest rate results in which of the ...

[casperchen82]

An increase in the real interest rate results in which of the following?
 
  A) an increase in the demand for loanable funds
  B) a decrease in the demand for loanable funds
  C) an increase in the quantity of loanable funds supplied
  D) Both B and C will occur as a result of an increase in the real interest rate.

Question 2

For a given supply curve, the deadweight loss from the imposition of a tax is smaller if demand is more elastic.
 
  Indicate whether the statement is true or false

[chevyboi1976]

Answer to Question 1

C

Answer to Question 2

FALSE