The Table Below Shows Data for the U Between 2007 and 2008 the Real Interest Rate and Caused

question 217

Multiple Choice

The table below shows data for the U.S.
$$\begin{array} { | l | l | l | } \hline & \begin{array} { l } \text { Nominal } \\\text { Interest Rate }\end{array} & \text { Inflation Rate } \\\hline 2006 & 5.25 & 4 \\\hline 2007 & 5 & 2 \\\hline 2008 & 4.5 & 4.3 \\\hline\end{array}$$
Between 2007 and 2008 the real interest rate and caused a the demand for loanable funds curve.

• A) increased; movement up along.
• B) increased; rightward shift.
• C) decreased; movement down along.
• D) decreased; leftward shift.

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