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Question 122

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Use the following to answer questions: Use the following to answer questions:   -(Figure: Crowding Out)  Use Figure: Crowding Out. If the demand for loanable funds curve shifts to the right, the result will be a(n)  _____ in the interest rate and a(n)  _____ in the total amount of borrowing in the funds market. A)  increase; increase B)  increase; decrease C)  decrease; decrease D)  decrease; increase
-(Figure: Crowding Out) Use Figure: Crowding Out. If the demand for loanable funds curve shifts to the right, the result will be a(n) _____ in the interest rate and a(n) _____ in the total amount of borrowing in the funds market.


A) increase; increase
B) increase; decrease
C) decrease; decrease
D) decrease; increase

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