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Author Question: If, at the current interest rate, the quantity of loanable funds supplied is less than the quantity ... (Read 94 times)

Lisaclaire

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on: Jun 29, 2018
If, at the current interest rate, the quantity of loanable funds supplied is less than the quantity of loanable funds demanded, then
 
  A) the supply of loanable funds curve shifts leftward and the real interest rate rises.
  B) the real interest rate falls.
  C) the supply of loanable funds curve shifts leftward and the real interest rate falls.
  D) the real interest rate rises.
  E) the supply of loanable funds curve shifts rightward and the real interest rate rises.

Question 2

Suppose potential GDP is 100 billion and the natural unemployment rate is 5 percent. If the unemployment rate is 6 percent, then according to Okun's Law real GDP is
 
  A) 102 billion. B) 98 billion. C) 101 billion. D) 99 billion. E) 100 billion.


C.mcnichol98

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Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

B


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