In the loanable funds model, supply of loans in a closed economy is equal to:

Question 1 options:

	domestic plus foreign savings.
	domestic savings.
	foreign savings.
	domestic minus foreign savings.

The real interest rate is a ________ to a firm, and so, as real interest rates rise, ________.

Question 2 options:

	cost; firms will invest more
	cost; savers will save less
	cost; firms will invest less
	revenue; firms will invest more

When investors fear that inflation is going to increase, then:

Question 3 options:

	the ex post interest rate rises.
	the ex ante interest rate rises.
	the ex post interest rate falls.
	the ex ante interest rate falls.