In the loanable funds market, as the interest rate rises the ________ and the ________.
A) quantity of loanable funds supplied increases; quantity of loanable funds demanded decreases
B) quantity of loanable funds supplied decreases; quantity of loanable funds demanded increases
C) supply of loanable funds increases; demand for loanable funds decreases
D) supply of loanable funds decreases; demand for loanable funds increases
Question 2
Which of the following individuals is the best example of a structurally unemployed worker?
A) a recent college graduate who has entered the labor force
B) an individual who has been laid off from his job because of a business cycle recession
C) an automobile worker who has lost her job because of an increase in automobile imports and does not have the skills currently needed by businesses
D) an individual who quits one job in the hope of finding a better job
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