Which of the Following Statement Regarding the Loanable Funds Market

question 8

Multiple Choice

Which of the following statement regarding the loanable funds market is true?

• A) A decrease in the government budget deficit increases the real interest rate.
• B) An increase in the government budget deficit shifts the supply of loanable funds to the right.
• C) An increase in private saving shifts the supply of loanable funds to the left.
• D) An increase in the government budget deficit shifts the supply of loanable funds to the left.

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Definitions:

Realtor

A professional in the real estate industry who is a member of the National Association of Realtors and adheres to its code of ethics, involved in buying, selling, or renting properties.

Covenant Deeds

Legal agreements used in property deeds to restrict sale to, occupation by, or use by people of a particular race or religion, historically contributing to racial segregation and discrimination in housing.

Massey's Spatial Assimilation Thesis

A theory proposed by sociologist Douglas S. Massey, which suggests that the spatial assimilation of immigrants into a host society occurs as they acquire socioeconomic status and adopt behaviors of the native population.

Ethnic Enclaves

Geographical areas with high concentrations of individuals from the same ethnicity, fostering a sense of community and cultural preservation.