In Figure 23.2.3, if the real interest rate is constant at 6 percent and and expected profit rises, the amount of loanable funds demanded will be
A)less than $450 billion.
C)between $300 billion and $450 billion.
D)greater than $450 billion.
All of the following are sources of loanable funds EXCEPT
C)government budget surplus.
E)none of the above
Which of the following influences household saving?
I. The real interest rate
II. Disposable income
III. Expected future income
B)I and II only
C)I and III only
D)I, II, and III only
E)II and III only
If households' disposable income decreases, then
A)households' saving will decrease.
B)households' saving will increase.
C)the supply of loanable funds decreases.
D)a movement occurs down along the supply of loanable funds curve.
E)Both A and C are correct.