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Principles of Macroeconomics

The following sample questions do not appear on an actual CLEP examination. They are intended to give potential test-takers an indication of the format and difficulty level of the examination and provide content for practice and review. For more sample questions and information about the test, see the CLEP Official Study Guide.

Question 4 of 8

Which of the following will cause the real interest rate to decrease in the loanable funds market?

  • A.

    A decrease in taxes on investment

  • B.

    A decrease in the money supply

  • C.

    An increase in private savings

  • D.

    An increase in aggregate demand

  • E.

    An increase in government borrowing

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