Which of the Following Statements Regarding the Loanable Funds Market

question 19

Multiple Choice

Which of the following statements regarding the loanable funds market is not true?

• A) A decrease in a country's net capital outflow shifts the demand for loanable funds to the left.
• B) An increase in domestic investment shifts the demand for loanable funds to the right.
• C) An increase in a country's net capital outflow shifts the supply of loanable funds to the left.
• D) An increase in a country's net capital outflow raises its real interest rate.

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Definitions:

Nature

The physical world and everything in it, such as plants, animals, and landscapes, as opposed to humans or human creations.

Nurture

The influence of external factors like environment, education, and social experience on an individual's development, as opposed to genetic predisposition.

Temperaments

Inherent personality traits and tendencies that are apparent from infancy and are believed to be biologically based.

Attachment Styles

Patterns of behavior in relationships that affect how individuals bond with others, typically classified as secure, anxious, avoidant, and disorganized.