A Decrease in Saving That Leads to an Increase in the Interest

question 291

Multiple Choice

A decrease in saving that leads to an increase in the interest rate will

• A)decrease the amount of investment spending.
• B)only result in a surplus of loanable funds.
• C)shift the demand for loanable funds to the right, increasing net investment.
• D)shift the demand for loanable funds to the left, causing a decrease in investment.

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Definitions:

Saccule

Saclike cavity in the vestibule of the vertebrate inner ear; contains sensory receptors for gravitational equilibrium.

Exteroreceptors

External sensors in the body that detect stimuli from the outside world, such as light, sound, and touch.

Perception

Processing of sensory stimuli that occurs when the brain interprets information being received from the sensory receptors.

Thermoreceptors

Thermoreceptors are sensory receptors that detect changes in temperature, enabling the sensation of warmth or cold.