An increase in wealth leads to ________ loanable funds.
A) a decrease in the demand for
B) an increase in the supply of
C) a decrease in the supply of
D) an increase in the demand for
E) no change in either the supply of loanable funds or the demand for
Question 2
According to Okun's Law, when the natural employment rate is 6 percent and potential GDP is 10 trillion, then when actual employment is 7 percent, real GDP is
A) 9.9 trillion. B) 8 trillion. C) 10.1 trillion. D) 9.8 trillion. E) 10.2 trillion.
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