-In the Figure Above, the Leftward Shift from the Demand

question 24

Multiple Choice

-In the figure above, the leftward shift from the demand for loanable funds curve DLF₁ to the demand for loanable funds curve DLF₃, could be the result of

• A) a government budget surplus.
• B) the economy entering an expansion.
• C) an increase in interest rates during an economic expansion.
• D) the economy entering a recession.
• E) a decrease in interest rates during an economic recession.

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Definitions:

Excludable

A characteristic of a good or service that allows owners or producers to prevent others from using it without paying.

Rival In Consumption

A characteristic of a good whereby its use by one person diminishes its availability for use by another person, contrasting with non-rival goods.

Gym Membership

A paid subscription that grants an individual access to a gym's facilities and equipment for a set period of time, promoting physical fitness and health.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by anyone without preventing others from using them as well.