If expected profit falls, the demand for loanable funds curve ...

[Deast7027]

If expected profit falls, the demand for loanable funds curve shifts ________, and the real interest rate ________.
 
  A) leftward; does not change
  B) leftward; rises
  C) leftward; falls
  D) rightward; falls
  E) rightward; rises

Question 2

When the output gap is positive, it represents ________ gap, and when it is negative, it represents ________ ga
 
  A) a recessionary; an inflationary
  B) an inflationary; a recessionary
  C) an inflationary; an employment
  D) an employment; an unemployment
  E) None of the above answers is correct.

[Sammyo]

Answer to Question 1

C

Answer to Question 2

B

[Deast7027]

Thanks for the timely response, appreciate it

[Joy Chen]

Excellent