A higher interest rate ________ asset prices because it ________ the present value of the ________.

Question 4 options:

A)	increases; reduces; risk premium

B)	reduces; reduces; income flow

C)	increases; increases; income flow

D)	reduces; reduces; expected earnings

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Question 5 (2 points)

We can summarize the supply of loans in the loanable funds model by:

Question 5 options:

A)	supply of loans = savings + capital inflows - capital outflows.

B)	supply of loans = savings + net capital outflows.

C)	supply of loans = capital inflows - capital outflows.

D)	supply of loans = savings + capital inflows.