During an economic recession, : (Multiple Choice)

During an economic recession,
 
  A) the demand and supply curves for loanable funds both shift to the right and the equilibrium interest rate usually rises.
  B) the demand and supply curves for loanable funds both shift to the left and the equilibrium interest rate usually falls.
  C) the demand curve for loanable funds shifts to the right, the supply curve for loanable funds shifts to the left, and the equilibrium interest rate usually falls.
  D) the demand curve for loanable funds shifts to the left, the supply curve for loanable funds shifts to the right, and the equilibrium interest rate usually rises.

Question 2

When the tax rate increases, the tax revenue
 
  A) always increases.
  B) does not change.
  C) always decreases.
  D) may increase or decrease.

Question 3

Assume that prices have risen in a given economy by an average of 5 percent over the last nine years. If consumers base their expectations about future price movements on that knowledge alone their forecasts rely on ________.
 
  A) reverse expectations
  B) adaptive expectations
  C) rational expectations
  D) monetary expectations