Which statement about the loanable funds market is NOT correct?

Question 3 options:

a.The market suppliers are the savers and the buyers are the borrowers.

b.The price of loanable funds is the real interest rate.

c. Loanable funds are provided by savers to borrowers to spend on investment goods and services.

d.The loanable funds theory describes changes in short-term interest rates.

Which of the following best describes the classical view of economics?

Question 4 options:

a.Because markets are inherently efficient, government intervention is rarely needed.

b. Because unemployment can be prolonged, government intervention is needed to stimulate job growth.

c. Because markets are inherently inefficient, government intervention is needed to smooth business cycles.

d.Because markets are inherently efficient, government intervention is needed only in the short run.