Question 18 If the bank agrees to make a loan at a 7 percent interest rate and the inflation rate is 3 percent, then 4 percent is the Not yet rate. answered Marked out of O a. nominal interest 1.00 O b. real interest Flag question O c. hyperinflation O d. disinflation Question 19 Bob has heard rumors that his employer will be merging with another firm and many employees may lose their jobs, and Not yet he wants to be prepared in case he loses his job. If he begins to save more in response to this rumor, it is a answered reason for saving. Marked out of 1.00 O a. public Flag question O b. life-cycle O c. precautionary O d. private Question 20 As the real interest rate increases, the quantity of saving supplied and the quantity of saving demanded Not yet answered Marked out of O a. increases; increases 1.00 Flag O b. decreases; increases question O c. does not change; does not change O d. increases; decreases