The Table Below Shows Data for the United States Between 2006 and 2007, the Real Interest Rate and Caused

question 154

Multiple Choice

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

• A) decreased; downward along
• B) decreased; leftward.
• C) increased; movement upward along
• D) increased; rightward shift.

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