Which of the Following Would Be Most Likely to Increase

question 38

Multiple Choice

Which of the following would be most likely to increase the supply of loanable funds and lead to low interest rates?

• A) Expansionary monetary policy that resulted in high rates of inflation.
• B) Constant policy shifts that generate uncertainty and reduce investment.
• C) Demographic shifts that increase the number of people in age categories with high saving rates relative to the number in age categories with a strong demand for loanable funds.
• D) Large budget deficits that push the government debt to GDP ratio to a high level.

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Definitions:

Limited Service

Refers to a business model where only a partial range of services is offered to customers as opposed to full-service alternatives.

Service Retailer

A business that sells intangible products or services directly to consumers.

Low Prices

The strategy of setting the cost of a product or service lower than the competition, often to attract more customers or gain a market share.

Experiential Retail

A retail strategy that focuses on providing customers with experiences beyond the traditional shopping encounter to engage and entertain.