Suppose Life Becomes More Unpredictable and Households Decide to Increase

question 107

Multiple Choice

Suppose life becomes more unpredictable and households decide to increase their precautionary savings.In this case,the loanable funds model predicts that

• A) interest rate goes down, and quantity of borrowed funds increases.
• B) interest rate goes down, and quantity of borrowed funds decreases.
• C) interest rate goes up, and quantity of borrowed funds decreases.
• D) interest rate goes up, and quantity of borrowed funds increases.

Understand the psychological and social impacts of parental employment and family structure on children.

Recognize the role of social cognition in understanding the self and others during middle childhood.

Understand the principles of the system of checks and balances in the U.S. Constitution.

Comprehend the concept of police power and its application in states' legislation to protect the welfare of citizens.

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Definitions:

Somatic Nervous

Part of the peripheral nervous system that controls voluntary movements of the body and transmits sensory information to the central nervous system.

Peripheral System

Refers to the peripheral nervous system, which consists of all the nerves that branch out from the brain and spinal cord (central nervous system) to the rest of the body, facilitating communication between the CNS and the limbs and organs.

Autonomic Nervous

Part of the nervous system that controls involuntary actions of the visceral muscles and internal organs, including heart rate, digestion, and respiratory rate.

Brain

The central organ of the human nervous system, housed in the skull and responsible for controlling and coordinating all voluntary and involuntary activities, along with processing sensory information.