Table 23.3.2 -Refer to Table 23.3.2. the Table Shows an Economy's Demand

question 87

Multiple Choice

Table 23.3.2

-Refer to Table 23.3.2. The table shows an economy's demand for loanable funds and supply of loanable funds schedules when the government's budget is balanced. The quantity of loanable funds demanded increases by $1 trillion at each real interest rate and the quantity of loanable funds supplied increases by $2 trillion at each real interest rate. If the government wants investment to be $9 trillion, it must ________ its budget balance by ________ trillion.

• A)increase; $1
• B)decrease; $1
• C)increase; $1.5
• D)decrease; $1.5
• E)increase; $2

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Definitions:

Valid Argument

An argument whose conclusion logically follows from its premises, ensuring that if the premises are true, the conclusion must also be true.

Conclusion

The final part of something, such as an argument or piece of writing, summarizing the main points and often expressing a final judgment or decision.

Invalid Arguments

Arguments that fail to follow logical form, where the conclusion does not logically follow from the premises.

Unsound

Not based on solid reasoning or logic; flawed or lacking in stability.