The Following Graph Shows What Occurred During a Flight to Quality

question 1

Multiple Choice

The following graph shows what occurred during a flight to quality for the loanable funds market for US Treasury securities and the loanable funds market for the rest of the world.

Based on the information presented in the graph, which of the following statements is true?

• A)The global flight to quality resulted in an increase in demand in the loanable funds market for the rest of the world.
• B)The global flight to quality pushed up the borrowing costs for the rest of the world.
• C)The global flight to quality pushed up the borrowing costs for loanable funds in the market for US Treasury securities.
• D)The global flight to quality resulted in an increase in supply in both the loanable funds market for US Treasury securities and in the loanable funds market for the rest of the world.

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Definitions:

Smooth Muscle

A type of muscle tissue which is non-striated, involuntary, and found within the walls of internal organs such as the stomach, intestines, and blood vessels.

Cardiac Muscle

Cardiac muscle is a specialized form of striated muscle found exclusively in the heart, characterized by interconnected cells that contract to pump blood throughout the body.

Contraction

The process of muscle fibers shortening and generating force, often resulting in movement of parts of the body.

Cardiac Muscle

A specialized form of striated muscle occurring in the hearts of vertebrates, responsible for its contraction.