1) The total amount of loanable funds available to U.S. borrowers is influenced by changes in Select one: A. the rate of savings. B. the availability of bank credit. C. the velocity of circulation. D. all of the above.

2) Which of the following is true concerning lending patterns and inflation?

(I) Adaptive lag progressively considers inflation when making loans.

(II) Complete illusion ignores inflation when making loans.

(III) Rational expectations only partially considers inflation when making loans.

Select one: A. (I) only B. (II) only C. (III) only D. (I) and (II) only E. (II) and (III) only