Consider the Market for Loanable Funds for a Closed Economy

question 61

Multiple Choice

Consider the market for loanable funds for a closed economy in the long run. Other things being equal, a country with a high national saving rate will tend to have

• A)trouble achieving potential real national income in the short run.
• B)either a high or low growth rate depending on the investment demand schedule.
• C)a high growth rate because aggregate expenditure will be high out of any given income.
• D)an AS curve moving continually to the left.
• E)a high growth rate because sustained high investment is possible with high saving.

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Definitions:

Self-Deceptive Techniques

Self-deceptive techniques are psychological strategies individuals use to deny or rationalize their own behavior, thoughts, and feelings to protect their self-esteem or avoid facing uncomfortable truths.

Psychosis

A mental disorder characterized by a disconnection from reality, which might include delusions, hallucinations, and disordered thinking.

Unconscious

Part of the mind that operates outside of conscious awareness, containing thoughts, memories, and desires believed to influence behavior.

Maladaptive

Behaviors or thoughts that inhibit an individual's ability to adjust healthily to particular situations.