Use the Following to Answer Questions

question 286

Multiple Choice

Use the following to answer questions:
-(Figure: Loanable Funds) Use Figure: Loanable Funds. Which scenario might produce a new equilibrium interest rate of 5% and a new equilibrium quantity of loanable funds of $150 billion?

• A) Consumption as a fraction of disposable income increases.
• B) Businesses become more optimistic about the return on investment spending.
• C) The federal government has a budget surplus, rather than a budget deficit.
• D) There is an increase in capital inflows from other nations.

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Definitions:

Team Empowerment

The granting of power, resources, and autonomy to a team, enabling members to take collective decisions and act towards common goals effectively.

Potency

The power or influence something possesses to affect changes or produce significant effects, often used in contexts ranging from medicine to leadership dynamics.

Meaningfulness

The quality of having significance, purpose, or value, giving a sense of fulfillment or importance.

Power

The capacity or ability to direct or influence the behavior of others or the course of events.