Author Question: For a government to add to the supply of loanable funds, it must A) borrow. B) increase its ... (Read 86 times)

cool · **on:** Jun 29, 2018

For a government to add to the supply of loanable funds, it must

A) borrow.
B) increase its investment demand.
C) have a budget deficit.
D) raise the real interest rate.
E) have a budget surplus.

Question 2

If the price level is 100 in one year and rises to 102 the next year, then the inflation rate is

A) 0.02 percent.
B) 100 percent.
C) 102 percent.
D) 2.0 percent.
E) unable to be determined without knowing potential GDP.