Demographic Changes That Increase the Number of People in the Lending

question 72

Multiple Choice

Demographic changes that increase the number of people in the lending phase (for example, age 50 to 75) and reduce the number in the borrowing phase (under age 50) , will

• A) increase the demand for loanable funds relative to supply and lead to lower interest rates.
• B) reduce the demand for loanable funds relative to supply and lead to higher interest rates.
• C) increase the supply of loanable funds relative to demand and lead to lower interest rates.
• D) decrease the supply of loanable funds relative to demand and lead to lower interest rates.

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Definitions:

Verbal Reprimand

A spoken form of discipline or correction, typically delivered by a supervisor or authority figure.

Pay Reduction

A decrease in the amount of money an employee receives as salary or wages, often as a result of economic challenges, performance issues, or restructuring.

Demotion

The act of reducing an employee's rank or position, usually as a result of performance issues or organizational restructuring.

Law Of Contingent Reinforcement

The principle that a reward should be given only when a desired behaviour occurs.