Which of the following will happen if there is a fall in the supply of credit in an economy without any change in the demand for credit?
A) The real output will fall. B) The labor demand in the economy will increase.
C) Its consumption expenditure will increase. D) The real interest rate will fall.
Question 2
When demand increases and the demand curve shifts to the right, equilibrium price ________ and equilibrium quantity ________.
A) increases; increases B) decreases; decreases
C) decreases; increases D) increases; decreases
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