Which Event Could Be Expected to Shift a Nation's Supply

question 74

Multiple Choice

Which event could be expected to shift a nation's supply of loanable funds, as shown?

• A) increased purchases of domestic stocks by foreign investors
• B) a rise in the national unemployment rate
• C) a culture-wide revival of the virtue of patience
• D) greater numbers of people choosing to keep working when they could retire
• E) a wave of working adults entering their peak-earnings years

---

Definitions:

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for product differentiation and some control over pricing.

Identical Product

A good or service that is exactly the same in quality, function, and design across different sellers, making them perfect substitutes.

Oligopoly

An economic scenario where a handful of companies dominate the market, resulting in minimal competitive activity.

Herfindahl Index

A metric used to assess the level of concentration within a market, achieved by taking the square of each firm's market share and summing these squares.