Explain How Each of the Following Events Affect the Supply

question 74

Essay

Explain how each of the following events affect the supply of loanable funds curve:
a) The economy is in a recession so people's disposable income is lower.
b) The stock market is booming so the people's wealth is higher.
c) Fewer college graduates are finding jobs so expected future income is lower.
d) The real interest rate increases.

---

Definitions:

Behaviorists

Psychologists who focus on observable behaviors and the ways in which learning and environment influence them, often disregarding mental states.

Third Force

A term referring to the humanistic-existential perspective in psychology that emerged as a reaction against the limitations of Freudian psychoanalysis and behaviorism.

Personality Theory

A theory that attempts to explain the patterns of thoughts, feelings, and behavior that make a person unique.

Delicate Brain Surgery

Highly sensitive and precise surgical procedures performed on the brain requiring extreme care and expertise.