The supply of loanable funds curve reflects
a. the inverse relationship between the market interest rate and the quantity of borrowed funds
b. the inverse relationship between the market interest rate and the quantity of saving
c. the direct relationship between the market interest rate and the quantity of borrowed funds
d. the direct relationship between the market interest rate and the quantity of saving
e. the direct relationship between the market interest rate and the quantity of present consumption
Question 2
If a country runs a deficit in its current account, it is because
a. exports exceed imports
b. imports exceed exports
c. net unilateral transfers are negative
d. foreign currency received from exports and transfers exceeds the foreign exchange needed to pay for imports and to make unilateral transfers
e. foreign currency received from exports and transfers is less than the foreign exchange needed to pay for imports and to make unilateral transfers
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