-In the Above Figure, the Economy Is at Point a on the Initial

question 182

Multiple Choice

-In the above figure, the economy is at point a on the initial supply of loanable funds curve SLF₀. What happens if the real interest rate rises?

• A) Nothing; the economy would remain at point a.
• B) There would be a movement to a point such as b on supply of loanable funds curve SLF₀.
• C) The supply of loanable funds curve would shift rightward to a curve such as SLF₂.
• D) The supply of loanable funds curve would shift leftward to a curve such as SLF₁.

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Definitions:

Bailees

Individuals or entities who have temporary possession or custody of personal property belonging to another.

Common Carriers

Businesses that offer transportation services to the public under the authority of a regulatory body.

Reward

A benefit, often monetary, given in recognition of one's service, effort, or achievement.

Bailment

A legal relationship in which physical possession of personal property is transferred from one party to another, with the obligation of safekeeping.