Businesses fund a greater number of projects when interest rates are $\_\_\_\_\_\_$ and select projects with $\_\_\_\_\_\_$

a$.$ higher; higher NPV

b$.$ lower; higher NPV

c$.$ lower; lower NPV

d$.$ higher; lower NPV

$7.$ The federal government demand for Loanable funds is $\_\_\_\_\_.$ If government borrowing were expected to increase, the federal government demand for loanable funds would $\_\_\_\_$

a$.$ interest elastic; decrease

b$.$ interest elastic; increase

c$.$ interest inelastic; increase

d$.$ interest inelastic; decrease

$8.$ Foreign investing in U$.$S$.$ money market securities should cause a $($n$)\_\_\_\_\_\_$ the supply of loanable funds in the United States and cause $\_\_\_\_\_\_$ pressure on US interest rates.

a$.$ decrease; upward

b$.$ decrease; downward

c$.$ increase; downward

d$.$ increase; upward the pressure on U$.$S

$9.$ If economic expansion is expected to increase, business demand for loanable funds should $\_\_\_\_\_\_$ and interest rates should $\_\_\_\_\_\_.$

a$.$ increase; increase

b$.$ increase; decrease c$.$ decrease; decrease

d$.$ decrease; increase

$10.$ Under the Fisher effect, expectations of higher inflation cause savers to require a $\_\_\_\_\_$ on savings.

a$.$ higher nominal interest rate

b$.$ higher real interest rate

c$.$ lower nominal interest rate

d$.$ lower real interest rate