1.Which of the following statements about the major suppliers and demanders of loanable funds in the United States are TRUE? I. The household sector is a net suppliers of loanable funds II. The foreign sector is a net demander of loanable funds III. The business sector is a net supplier of loanable funds IV. The government sector is a net demander of loanable funds.

A.I, II, and IV

B.I and IV

C.II, III, and IV

D.III only

E. I, II, III, and IV

2.The hurdle rate on a business project is not impacted by changes in interest rates in the economy.

A. T

B. F

Thank you.