As a Result of a Recession, the Default Risk Increases

question 125

Multiple Choice

As a result of a recession, the default risk increases. How does this change affect the loanable funds market?

• A)There is a movement up along the supply of loanable funds curve.
• B)There is a leftward shift of the supply of loanable funds curve.
• C)There is a movement down along the demand for loanable funds curve.
• D)There is a rightward shift of the supply of loanable funds curve.
• E)There is a rightward shift of the demand for loanable funds curve.

---

Definitions:

Argument By Anecdote

Using personal stories as evidence in an argument, which may not be representative or reliable data for general conclusions.

Stereotyping

Making generalized beliefs or assumptions about the characteristics of all members of a group, based on an image about what people in that group are like.

Marian Breland

A pioneering psychologist known for her work in the field of animal behavior and the development of applied behavior analysis.

Keller Breland

A psychologist known for applying principles of behaviorism to train animals, pioneering the field of applied animal psychology.