An increase in the real interest rate ________ the quantity of ...

[Themember4]

An increase in the real interest rate ________ the quantity of loanable funds supplied and ________ the quantity of loanable funds demanded.
 
  A) increases; increases
  B) increases; decreases
  C) decreases; increases
  D) decreases; decreases

Question 2

Employment and (total) potential GDP increase if the
 
  A) labor supply curve shifts rightward and the labor demand curve does not shift.
  B) labor demand curve shifts leftward more than the labor supply curve shifts rightward.
  C) labor demand curve shifts leftward and the labor supply curve does not shift.
  D) None of the above answers are correct.

[AmberC1996]

Answer to Question 1

B

Answer to Question 2

A