If an Increase in the Expected Future Returns on Investment

question 221

Multiple Choice

If an increase in the expected future returns on investment leads to an increase in the current level of investment projects undertaken,the loanable funds market will experience an increase in the _____ loanable funds and _____ in equilibrium interest rates.

• A) demand for;an increase
• B) supply of;an increase
• C) demand for;a decrease
• D) supply of;a decrease

---

Definitions:

Social Information Processing

A theory that describes how individuals interpret and respond to social information, including cues and messages from others.

Negative Beliefs

Cognitive patterns that involve pessimistic, self-defeating thoughts or attitudes towards oneself or the external world.

Disgust Sensitivity

The degree to which people are disgusted by a variety of stimuli, such as bugs, types of food, and small animals.

Phobias

Excessive and irrational fears of specific objects, situations, or activities that pose little to no actual danger.