-In the Above Figure, the Initial Supply of Loanable Funds

question 8

Multiple Choice

-In the above figure, the initial supply of loanable funds curve is SLF₀ and the initial demand for loanable funds curve is DLF₀. An economic expansion that raises disposable income and the expected profit would

• A) only shift the demand for loanable funds curve rightward to a curve such as DLF₁.
• B) have no effect on either the demand for loanable funds curve or the supply of loanable funds curve.
• C) shift the supply of loanable funds curve rightward to a curve such as SLF₁, and shift the demand for loanable funds curve rightward to a curve such as DLF₁.
• D) only shift the supply of loanable funds curve rightward to a curve such as SLF₁.

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Definitions:

Disease Model

A theoretical framework that describes the complex interactions between biological, psychological, and sociocultural factors in causing or sustaining a disease.

Tension-reduction Model

A theory suggesting that alcohol is consumed in an effort to reduce stress and anxiety.

Genetic Component

Refers to the contribution of genes to the development or progression of a trait or condition.

Hereditary Influence

The impact of genetic factors inherited from parents on the physical and psychological attributes of an individual.