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.

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Definitions:

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Detailed, precise descriptions of the terms, conditions, and obligations agreed upon by parties in a contract, often defining the scope, quality, and timelines of work or services.

Minor Flaws

Small defects or imperfections in an item or product that do not significantly affect its use or value.

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The conduct between parties under a contract that indicates what they consider to be the agreement's requirement, used to interpret the contract's terms.

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The conduct between parties in previous transactions that establishes a common basis for their understanding.