Suppose that 9-month Treasury bills are currently paying 2.6% interest and the expected inflation is 1.7%. What is the real interest rate under Fisher effect?

Question 1 options:

	4.30%
	0.90%
	2.60%
	1.70%

If economic expansion is expected to decrease, the demand for loanable funds should ____ and interest rates should ____.

Question 3 options:

	increase; increase
	increase; decrease
	decrease; increase
	decrease; decrease

If the federal government reduces its budget deficit, this causes a(n) ____ in the supply of loanable funds and a(n) ____ in the demand for loanable funds.

Question 5 options:

	no change; decrease
	no change; increase
	decrease; no change
	increase; no change