10. The real interest rate is the
(x) real rate of return to the lender.
(y) real cost of borrowing to the borrower.
(z) nominal interest rate plus the rate of inflation.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (z) only

13. If there is a shortage of loanable funds, then
A. neither curve shifts, but the quantity of loanable fundssupplied decreases and the quantity demanded increases as theinterest rate falls to equilibrium.
B. neither curve shifts, but the quantity of loanable fundssupplied increases and the quantity demanded decreases as theinterest rate rises to equilibrium.
C. neither curve shifts, but the quantity of loanable fundssupplied decreases and the quantity demanded increases as theinterest rate rises to equilibrium.
D. the supply of loanable funds shifts right and the demand shiftsleft.
E. the supply of loanable funds shifts left and the demand shiftsright.