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

question 53

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 increase in the expected profit would

• A) only shift the demand for loanable funds curve rightward to a curve such as DLF₁.
• B) only shift the supply of loanable funds curve rightward to a curve such as S LF₁.
• C) have no effect on either the demand for loanable funds curve or the supply of loanable funds curve.
• D) 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.

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Definitions:

Perceived Control

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The tendency to maintain a positive outlook and approach towards life's challenges, focusing on favorable outcomes.