If the Government Institutes Policies That Increase Incentives to Save,then

question 329

Multiple Choice

If the government institutes policies that increase incentives to save,then in the loanable funds market

• A) the demand for loanable funds shifts right.
• B) the demand for loanable funds shifts left.
• C) the supply of loanable funds shifts right.
• D) the supply of loanable funds shifts left.

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Definitions:

Explanatory Variables

Variables in a statistical model that are used to explain variation in the response variable, also known as independent variables.

Indicator Variable

A variable used in statistical models that takes the value 1 if a specific condition is true and 0 if it is false, often used to represent categorical data in numerical form.

Logistic Regression

A statistical method for analyzing datasets in which there are one or more independent variables that determine an outcome, which is dichotomous.

Multiple Logistic Regression

A statistical technique that models the probability of a certain outcome or event based on more than one independent variable.