The creation of the European Union is an example of Hayek's:
a. Human action
b. Human design
c. Spontaneous disorder
d. None of the above
Question 2
If supply is upward-sloping and demand is downward sloping, what happens to the equilibrium real risk-free interest rate and quantity of real loanable funds per time period if there is a decrease in real money supply:
a. The real risk-free interest rate rises and the quantity per time period falls.
b. The real risk-free interest rate rises and the quantity per time period rises.
c. The real risk-free interest rate rises and the quantity per time period does not change.
d. The real risk-free interest rate is uncertain and the quantity per time period is uncertain.
e. The real risk-free interest rate falls and the quantity per time period falls.
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