If Suddenly a 4 Percent Inflation Rate (Instead of a Zero

question 55

Multiple Choice

If suddenly a 4 percent inflation rate (instead of a zero percent inflation rate) is expected by both suppliers and demanders in the loanable funds market, then

• A)the demand for loanable funds curve will shift rightward, and the supply of loanable funds curve will shift leftward.
• B)the demand for loanable funds curve will shift leftward, and the supply of loanable funds curve will shift rightward.
• C)both the demand for loanable funds curve and the supply of loanable funds curve will shift leftward.
• D)both the demand for loanable funds curve and the supply of loanable funds curve will shift rightward.

---

Definitions:

Rice Cultivation

The practice of growing rice as a crop, which is a staple food in many parts of the world, especially in Asia.

Louisiana Code Noir

A set of laws enacted in 1724 governing the conduct, treatment, and legal status of slaves in the French colony of Louisiana.

Slaves

People who are owned and compelled to work for others, often without any personal freedoms or rights, historically prevalent across various societies.

Married Slaves

Enslaved individuals who entered into marriages, often not legally recognized; these relationships were subject to the constraints and cruelties of slavery.