Figure 23.2.4 -In Figure 23.2.4, the Economy Is at Point a on at Point

question 138

Multiple Choice

Figure 23.2.4

-In Figure 23.2.4, the economy is at point A on the supply of loanable funds curve SLF₀. What happens if disposable income decreases?

• A)Nothing; the economy would remain at point A.
• B)There is a movement to a point such as B on the supply of loanable funds curve SLF₀.
• C)The supply of loanable funds curve shifts rightward to a curve such as SLF₂.
• D)The supply of loanable funds curve shifts leftward to a curve such as SLF₁.
• E)The supply of loanable funds curve becomes downward sloping.

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Definitions:

Dissociates

To split into separate smaller atoms, ions, or molecules, especially in the context of dissolving in a solution.

Electrodes

Conductors through which electricity enters or leaves a medium, whether it be an electrolytic solution, a solid, or a vacuum.

Electrolytes

Substances that dissociate into ions in solution, allowing the solution to conduct electricity.

Weak Electrolyte

A substance that partially dissociates into ions in solution, thus conducting electricity weakly.