Refer to the Figure Below to Answer the Following Questions

question 96

Multiple Choice

Refer to the figure below to answer the following questions.

Figure 23.2.4
-Refer to Figure 23.2.4.In Figure 23.2.4,the economy is at point A on the supply of loanable funds curve SLF?.What happens if disposable income decreases?

• A)Nothing;the economy would remain at point A.
• B)There is a movement to a point such as B on the supply of loanable funds curve SLF?.
• C)The supply of loanable funds curve shifts rightward to a curve such as SLF?.
• D)The supply of loanable funds curve shifts leftward to a curve such as SLF?.
• E)None of the above.

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Definitions:

External Costs

Costs of a transaction that affect people other than the buyer or seller and are not reflected in the prices.

Full Costs

Full costs encompass all expenses associated with producing a product or offering a service, including both direct and indirect costs.

Market Economy

An economic system in which economic decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country's citizens and businesses.

Pollution

The introduction of contaminants into the natural environment that cause adverse change.