An increase in the quantity of loanable funds demanded occurs ...

[Marty]

An increase in the quantity of loanable funds demanded occurs when
 
  A) wealth decreases.
  B) the expected profit rises.
  C) the real interest rate rises.
  D) the supply of loanable funds decreases.
  E) the real interest rate falls.

Question 2

With no international trade, a country ________ consume at a point outside of its PPF; with international trade, a country ________ consume at a point outside of its PPF.
 
  A) cannot; can
  B) can; can
  C) can; cannot
  D) cannot; cannot
  E) None of the above answers is correct because the presence or absence of international trade has nothing to do with where a country consumes in comparison to its PPF.

[shailee]

Answer to Question 1

E

Answer to Question 2

A

[Marty]

Gracias!

[ghepp]

Excellent