If the Government Institutes Policies That Diminish Incentives to Save,then

question 153

Multiple Choice

If the government institutes policies that diminish incentives to save,then in the loanable funds market

• A)the demand for loanable funds shifts rightward.
• B)the demand for loanable funds shifts leftward.
• C)the supply of loanable funds shifts rightward.
• D)the supply of loanable funds shifts leftward.

---

Definitions:

Calculate Elasticity

The process of assessing how the quantity demanded or supplied of a good changes in response to changes in its price or other factors.

Unit Elastic

Describes a demand or supply situation where a change in price leads to a proportional change in the quantity demanded or supplied.

Total Revenue

The total income generated by a business through the sale of goods or services before any costs or expenses are deducted.

Downward-sloping

A graphical representation indicating a negative relationship between two variables, such as price and quantity demanded in the demand curve.