When the real interest rate increases,

Select one:

a. the demand for loanable funds curve shifts leftward.

b. the supply of loanable funds curve shifts leftward.

c. there is a movement down along the supply of loanable funds curve.

d. there is a movement up along the supply of loanable funds curve.

e. the supply of loanable funds curve shifts rightward.

The theory of purchasing power parity states that a deflation in a nation causes the nation's currency to ______, leaving the _______ exchange rate unchanged.

Select one:

a. appreciate / nominal

b. appreciate / real

c. depreciate / nominal

d. depreciate / real

e. Both B and D are correct.