2. Real risk free interest rate is affected by time preference of consumption" and "risk aversion". If people do not want to spend now they supply more funds, so the real risk free interest rate (a) On the other hand, when the general level of risk aversion increases, lenders demand more return to compensate for the risk, so the real risk free interest rate (b) (Hint: Fill the blanks with "increase" and/or "decrease") (4 pts)