Economic expansion is expected then demand for loanable fund

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Reference no: EM131843080

1. If economic expansion is expected, then demand for loanable funds should ____ and interest rates should ____.

a. increase; increase

b. increase; decrease

c. decrease; decrease

d. decrease; increase

2. If the Treasury uses a relatively large proportion of ____ debt to finance the deficit, this may place upward pressure on ____ interest rates, and corporations may reduce their investment in fixed assets.

a. long-term; long-term

b. long-term; short-term

c. short-term; long-term

d. B and C

Reference no: EM131843080

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