If the real interest rate rises, then the
A) quantity of saving decreases and there is a movement down along the supply of loanable funds curve.
B) quantity of saving increases and there is a movement up along the supply of loanable funds curve.
C) supply of saving increases and the supply of loanable funds curve shifts rightward.
D) supply of saving decreases and the supply of loanable funds curve shifts leftward.
E) demand for investment decreases and the demand for loanable funds curve shifts leftward.
Question 2
The short-run Phillips curve shows
A) a tradeoff between the unemployment rate and the inflation rate.
B) a tradeoff between real GDP and unemployment.
C) the expected inflation rate.
D) the natural unemployment rate.
E) potential GDP.
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