Suppose a basket of goods and serves has been selected to calculate the CPI and year 2002 has been chosen as the base year. In 2002, the basket's cost was $600; in 2004, the basket's cost was $650; and in 2006, the basket's cost was $700. The value of the CPI in 2004 was 92.3. O True O False If the government begins to run a budget surplus the supply of loanable funds increases and the real interest rate falls. O True O False Assume the market for loanable funds is in equilibrium at 5 percent interest rate. If firms become more optimistic about future profits, all else being equal, both the equilibrium interest rate and the equilibrium quantity of loanable funds would fall. O True O False