The Table Below Shows Data for the United States Between 2011 and 2012,the Real Interest Rate ________ and Caused

question 166

Multiple Choice

The table below shows data for the United States. $$\begin{array} { | c | c | c | } \hline & \begin{array} { c } \text { Nominal } \\\text { Interest Rate }\end{array} & \text { Inflation Rate } \\\hline 2011 & 5.25 & 4 \\\hline 2012 & 5 & 2 \\\hline 2013 & 4.5 & 4.3 \\\hline\end{array}$$
Between 2011 and 2012,the real interest rate ________ and caused a ________ the demand for loanable funds curve.

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

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Definitions:

Collateral

The property that is subject to a security interest.

Assumes Debt

When an individual or entity takes on the legal obligation to pay back a debt originally owed by another party.

Assign

To transfer property by sale, mortgage, pledge, or otherwise.