Question 9 A decrease in the real interest rate will decrease the quantity of which of the following? loanable funds supplied loanable funds demanded net capital outflow domestic investment

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Question 9
A decrease in the real interest rate will decrease the quantity of which of the following?
loanable funds supplied
loanable funds demanded
net capital outflow
domestic investment
During its financial crisis of 2009, Iceland suffered from capital flight. What happened to Iceland's real interest rate
and the krona?
The real interest rate fell, and the krona appreciated.
The real interest rate fell, and the krona depreciated.
The real interest rate rose, and the krona appreciated.
The real interest rate rose, and krona depreciated.
How does a change in government budget affect national saving?
A decrease in budget deficit does not affect national saving.
An increase in budget deficit increases national saving.
A decrease in budget surplus increases national saving.
An increase in budget surplus increases national saving.
Transcribed Image Text:Question 9 A decrease in the real interest rate will decrease the quantity of which of the following? loanable funds supplied loanable funds demanded net capital outflow domestic investment During its financial crisis of 2009, Iceland suffered from capital flight. What happened to Iceland's real interest rate and the krona? The real interest rate fell, and the krona appreciated. The real interest rate fell, and the krona depreciated. The real interest rate rose, and the krona appreciated. The real interest rate rose, and krona depreciated. How does a change in government budget affect national saving? A decrease in budget deficit does not affect national saving. An increase in budget deficit increases national saving. A decrease in budget surplus increases national saving. An increase in budget surplus increases national saving.
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