(Figure: Market for Loanable Funds 2) Based on the Graph

question 135

Multiple Choice

(Figure: Market for Loanable Funds 2) Based on the graph, if technological advances increase productivity, the demand for loanable funds curve will shift from _____ to _____ and the new equilibrium will be at point _____, holding supply constant at S₀.

• A) D₀; D₁; c
• B) D₀; D₁; b
• C) D₁; D₀; a
• D) D₁; D₀; d

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Definitions:

Behavior

Actions or reactions of individuals or groups in response to external or internal stimuli.

Single-blind Study

A study or experiment in which the participants do not know which group or condition they have been assigned to, but the researchers do.

Experimental Group

Subjects in an experiment who are subjected to the independent variable.

Control Group

A group in an experiment or study that does not receive treatment by the researchers and is then used as a benchmark to measure how the other tested subjects do.