Exam 2: Determination of Interest Rates

The federal government's spending policies are generally thought to be _________ interest rates, but municipal governments' spending is somewhat ________ interest rates. ​

Other things being equal, a ____ quantity of U.S. funds would be demanded by foreign governments and corporations if their domestic interest rates were ____ relative to U.S. rates.

Which of the following is NOT true regarding foreign interest rates?

The demand for funds resulting from business investment in new projects is ____ related to the number of projects implemented, and is therefore ____ related to the interest rate.

If the federal government needs to borrow additional funds, this borrowing reflects a(n)____ in the supply of loanable funds and a(n)____ in the demand for loanable funds. ​

For a given set of foreign interest rates, the quantity of U.S. loanable funds demanded by foreign governments or firms will be ____ U.S. interest rates.

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. ​