A Change in a Relevant Factor Other Than the Price

question 3

Multiple Choice

A change in a relevant factor other than the price of the good itself causes a ________ the demand curve, and a change in a good's own price causes a ________ the demand curve.

• A)shift of; shift of
• B)shift of; movement along
• C)movement along; shift of
• D)movement along; movement along

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Definitions:

Loanable Funds

The funds in financial institutions that are available for borrowing.

Higher Interest Rate

An increased percentage charged on borrowed money or paid on savings and investments.

Public Saving

Public saving refers to the surplus of government revenues over government spending. It's a component of national savings along with private savings.

Private Saving

The portion of household and business income that is not spent on current consumption but instead is saved or invested for future use.