Which of the Following Could Explain an Increase in the Equilibrium

question 217

Multiple Choice

Which of the following could explain an increase in the equilibrium interest rate and a decrease in the equilibrium quantity of loanable funds?

• A)The demand for loanable funds shifted to the right.
• B)The demand for loanable funds shifted to the left.
• C)The supply of loanable funds shifted to the right.
• D)The supply of loanable funds shifted to the left.

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Definitions:

Skepticism

A philosophical attitude questioning the possibility of certain knowledge or truth.

Cognitive Flexibility

The mental ability to switch between thinking about two different concepts or to think about multiple concepts simultaneously, facilitating adaptability and problem-solving.

Cognitive Abilities

Mental capabilities that involve the processing of information, reasoning, memory, problem-solving, and decision making.

Identity Identification

The process through which individuals recognizetheir own distinct personality traits, values, and social roles.