11.In the open-economy macroeconomic model, the market for loanable funds identity can be written as

	a.	S = I
	b.	S = NCO
	c.	S = I + NCO
	d.	S + I = NCO

12.Other things the same, people in the U.S. would want to save more if the real interest rate in the U.S.

	a.	fell. The increased saving would increase the quantity of loanable funds demanded.
	b.	fell. The increased saving would increase the quantity of loanable funds supplied.
	c.	rose. The increased saving would increase the quantity of loanable funds demanded.
	d.	rose. The increased saving would increase the quantity of loanable funds supplied.

13.The explanation for the slope of

	a.	the supply of loanable funds curve is based on the logic that a higher real interest rate leads to higher saving.
	b.	the demand for loanable funds curve is based on the logic that a higher interest rate leads to higher saving.
	c.	the supply of loanable funds curve is based on the logic that a higher real interest rate leads to lower saving.
	d.	the demand for loanable funds curve is based on the logic that a higher interest rate leads to lower saving.

14.A country has output of $900 billion, consumption of $600 billion, government expenditures of $150 billion and investment of $120 billion. What is its supply of loanable funds?

	a.	$30 billion
	b.	$90 billion
	c.	$120 billion
	d.	$150 billion

15.Other things the same, a decrease in the real interest rate

	a.	increases the quantity of loanable funds demanded.
	b.	shifts the demand for loanable funds curve to the right.
	c.	decreases the quantity of loanable funds demanded.
	d.	shifts the demand for loanable funds curve to the left.

16.If interest rates rose more in the U.S. than in France, then other things the same

	a.	U.S. citizens would buy more French bonds and French citizens would buy more U.S. bonds.
	b.	U.S. citizens would buy more French bonds and French citizens would buy fewer U.S. bonds.
	c.	U.S. citizens would buy fewer French bonds and French citizens would buy more U.S. bonds.
	d.	U.S. citizens would buy fewer French bonds and French citizens would buy fewer U.S. bonds.

17. If the demand for loanable funds shifts right, then

	a.	the real interest rate and the equilibrium quantity of loanable funds both fall.
	b.	the real interest rate falls and the equilibrium quantity of loanable funds rises.
	c.	the real interest rate and the equilibrium quantity of loanable funds both rise.
	d.	the real interest rate rises and the equilibrium quantify of loanable funds falls.

18.Which of the following would make the equilibrium real interest rate increase and the equilibrium quantity of funds decrease?

	a.	The demand for loanable funds shifts right.
	b.	The demand for loanable funds shifts left.
	c.	The supply of loanable funds shifts right.
	d.	The supply of loanable funds shifts left.

19.Which of the following would shift the demand for dollars in the market for foreign currency exchange to the right?

	a.	foreign citizens want to buy more U.S. goods and services at a given exchange rate
	b.	foreign citizens want to buy fewer U.S. goods and services at a given exchange rate
	c.	foreign citizens want to buy more U.S. bonds
	d.	foreign citizens want to by fewer U.S. bonds

20.If the real exchange rate for the dollar is below the equilibrium level, the quantity of dollars supplied in the market for foreign-currency exchange is

	a.	less than the quantity demanded and the dollar will appreciate.
	b.	less than the quantity demanded and the dollar will depreciate.
	c.	greater than the quantity demanded and the dollar will appreciate.
	d.	greater than the quantity demanded and the dollar will depreciate.