In the long-run equilibrium, an increase in the quantity of ...

[tsand2]

In the long-run equilibrium, an increase in the quantity of capital leads to
 
  A) an increase in the equilibrium price level and an increase in equilibrium real GDP.
  B) a decrease in the equilibrium price level and an increase in equilibrium real GDP.
  C) a decrease in the equilibrium price level, but no change in equilibrium real GDP.
  D) no change in the equilibrium price level, but an increase in equilibrium real GDP.

Question 2

A small country is an international borrower and its domestic demand for loanable funds increases. Consequently, the equilibrium quantity of loanable funds used in the country ________ and the country's international borrowing ________.
 
  A) does not change; increases
  B) does not change; does not change
  C) increases; increases
  D) increases; does not change

[trog]

Answer to Question 1

B

Answer to Question 2

C

[tsand2]

Thank you

[trog]

No problemo