If Banks Become Less Willing to Lend, Which Category of Spending

question 3

Multiple Choice

If banks become less willing to lend, which category of spending is likely to be most affected?

• A)Consumer durables
• B)Consumer nondurables
• C)Net exports
• D)Government purchases

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Definitions:

Reciprocity

The exchange of goods and services, of approximately equal value, between two parties.

Social Obligations

Social obligations refer to the duties or responsibilities imposed by society upon its members, which could involve participating in community service, adhering to societal norms, or fulfilling familial roles.

Making Profits

The process of generating financial gain from business activities after subtracting all expenses, taxes, and costs.

Gaining Prestige

The process of acquiring respect, honor, or recognition from others within a social group.