The Table Below Shows Data for the U Between 2012 and 2013 the Real Interest Rate ________ and |

question 145

Multiple Choice

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

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

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