Which Combination of Events Could Have Caused the Equilibrium Interest

question 77

Multiple Choice

Which combination of events could have caused the equilibrium interest rate to fall and the equilibrium quantity of loanable funds (both borrowed and lent) to rise?

• A) Firms are more pessimistic,and governments run fewer deficits.
• B) A baby boom begins,and investor confidence rises.
• C) People have lower time preferences,and governments run larger deficits.
• D) People have lower time preferences,and capital is more productive.
• E) More individuals are middle-aged,and wealth increases.

---

Definitions:

Selective Incorporation

The legal doctrine by which certain rights and freedoms guaranteed by the Bill of Rights are applied to the states through the Fourteenth Amendment's Due Process Clause.

Fourteenth Amendment

An amendment to the U.S. Constitution, adopted in 1868, that grants citizenship to all persons born or naturalized in the United States, including former slaves, and guarantees all citizens equal protection of the laws.

Pre-Civil War

Pre-Civil War refers to the period in United States history before the start of the American Civil War in 1861, characterized by growing tensions over issues like slavery and states' rights.

Civil Rights Act of 1964

The Civil Rights Act of 1964 is a landmark piece of federal legislation in the United States that prohibited discrimination on the basis of race, color, religion, sex, or national origin, particularly in voting, employment, and public accommodations.