Which of the Following Is the Best Example of Primary

question 45

Multiple Choice

Which of the following is the best example of primary control?

• A) You and your friends decide as a group to spend a day at the amusement park.
• B) You choose to paint your house yellow after your partner tells you about her strong preference for yellow.
• C) You cook spaghetti and meatballs because your parents are in town and it is their favorite dish.
• D) You return a computer game to the local computer store because it did not excite you as much as you had hoped.
• E) You buy a dog as a pet because you are allergic to cats.

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Definitions:

Demand For Loanable Funds Curve

The demand for loanable funds curve illustrates the relationship between the interest rate and the quantity of loanable funds demanded by borrowers, showing how borrowing can decrease as interest rates rise.

Interest Rate

The amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal, usually on an annual basis.

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.