-In the Above Figure, the Economy Is at Point a on the Initial

question 145

Multiple Choice

-In the above figure, the economy is at point a on the initial supply of loanable funds curve SLF₀. What happens if the interest rate rises?

• A) The supply of loanable funds curve shifts leftward to a curve such as SLF₁.
• B) There is a movement to a point such as b on supply of loanable funds curve SLF₀.
• C) The supply of loanable funds curve shifts rightward to a curve such as SLF₂.
• D) none of the above

---

Definitions:

Arguments

Reasons or sets of reasons given in support of an idea, action or theory.

Razor Blades

Thin, flat pieces of metal with a sharp edge, primarily used for cutting or shaving.

Participants

Individuals who take part in an activity or event, often used in the context of experiments or studies.

Classical Conditioning

A learning process in which a neutral stimulus becomes associated with a meaningful stimulus and acquires the capacity to elicit similar responses.