True or False: 1. A move toward a government budget surplus would tend to decrease the real

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True or False:
1. A move toward a government budget surplus would tend to decrease the real interest rate, other things equal.
2. When foreigners supply fewer funds than they demand, a capital outflow from the United States occurs.
3. When the domestic real interest rate is high, capital will tend to flow out to foreign countries.
4. An increase in disposable income would shift the supply of loanable funds curve to the right.
5. Lower real interest rates will shift the loanable funds demand curve right.
6. Higher real interest rates will increase the quantity of loanable funds supplied, but not change the loanable funds supply curve.
7. If the loanable funds demand curve shifted right, we would expect higher real interest rates and an increased quantity of loanable funds demanded to result.
8. If the loanable funds supply curve shifted left, we would expect higher real interest rates and an increased quantity of loanable funds demanded to result.

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Exploring Economics

ISBN: 9781439040249

5th Edition

Authors: Robert L Sexton

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