If Foreign Entities Save Less and Governments Run More Deficits,we

question 114

Multiple Choice

If foreign entities save less and governments run more deficits,we would correctly say that

• A) the new equilibrium quantity of loanable funds would decrease,but we would be unable to tell if the new equilibrium interest rate would be higher or lower than the original.
• B) the new equilibrium quantity of loanable funds would increase,but we would be unable to tell if the new equilibrium interest rate would be higher or lower than the original.
• C) the new equilibrium quantity of loanable funds would be indeterminate,but we would be certain the new equilibrium interest rate would be higher than the original.
• D) the new equilibrium quantity of loanable funds would be indeterminate,but we would be certain the new equilibrium interest rate would be less than the original.
• E) based on this information and because both changes would affect the demand for loanable funds in the opposite way,we would be unable to say anything about the relationship of the new equilibrium interest rate and quantity to the original interest rate and quantity.

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Definitions:

Health Indicator

A measure or metric used to assess the health status, function, or overall condition of an individual, community, or population, often informing public health and policy decisions.

Sentinel Condition

A disease or event that indicates the presence of a hazardous condition or a high-risk situation warranting public health surveillance and potentially immediate intervention.

Rare Disease

A condition affecting a small percentage of the population, often complex and poorly understood, and sometimes lacking effective treatment.

Statistical Test

A methodological procedure used to evaluate the probability of a hypothesis about a dataset being true.