The supply of loanable funds curve is a. upward sloping because ...

[Haya94]

The supply of loanable funds curve is
 a. upward sloping because fewer people are persuaded to forgo current consumption as the interest rate rises
  b. downward sloping, showing that more investment will be undertaken as inflation decreases
  c. upward sloping because the opportunity cost of goods and services that must be forgone increases
  d. downward sloping, showing that as more funds are made available, the risk cost of loaning funds decreases
  e. usually horizontal

Question 2

When net unilateral transfers are added to the net exports of goods and services, the result is called the
 a. merchandise trade balance
  b. official reserve transactions account
  c. balance of payments
  d. balance on capital account
  e. balance on current account

[ndhahbi]

Answer to Question 1

C

Answer to Question 2

E

[Haya94]

Thank you

[ndhahbi]

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