If Suddenly a 4 Percent Inflation Rate (Instead of a Zero

question 55

Multiple Choice

If suddenly a 4 percent inflation rate (instead of a zero percent inflation rate) is expected by both suppliers and demanders in the loanable funds market, then

• A)the demand for loanable funds curve will shift rightward, and the supply of loanable funds curve will shift leftward.
• B)the demand for loanable funds curve will shift leftward, and the supply of loanable funds curve will shift rightward.
• C)both the demand for loanable funds curve and the supply of loanable funds curve will shift leftward.
• D)both the demand for loanable funds curve and the supply of loanable funds curve will shift rightward.

---

Definitions:

Indemnity

A contractual agreement in which one party agrees to compensate for any losses or damages suffered by another.

Encryption

The process of converting information or data into a code, especially to prevent unauthorized access.

Electronic Documents

Digitally formatted documents, including texts, images, or data, stored and transmitted via electronic devices and software.

Signature Equivalent

A method or form that serves the same legal purpose as a handwritten signature, such as a digital signature.