Suppose That Expected Profit Decreases. This Change Means

question 249

Multiple Choice

Suppose that expected profit decreases. This change means

• A) the supply curve for loanable funds shifts rightward and the nominal interest rate rises.
• B) there is a movement down along the demand curve for loanable funds.
• C) the real interest rate rises as saving increases.
• D) the demand curve for loanable funds shifts leftward and the real interest rate falls.

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Definitions:

Founder Effect

Genetic drift that results from a small population colonizing a new area.

Frequency-Dependent Selection

Frequency-Dependent Selection refers to an evolutionary process by which the fitness of a phenotype or genotype depends on its frequency relative to other phenotypes or genotypes in the population.

Phenotype

A collection of visible features or attributes in an organism that emerge through the combination of its genetic makeup and environmental influences.

Fitness

In evolutionary terms, an organism's ability to survive and reproduce, thereby passing its genes onto the next generation more effectively than others.