Use the Following Diagram to Answer the Following Questions

question 12

Multiple Choice

Use the following diagram to answer the following questions.

-Refer to Loanable Funds. An increase in the federal budget deficit financed by issuing U.S. Treasury bonds would most likely:

• A) cause demand to shift from D₂ to D₁.
• B) cause demand to shift from D₁ to D₂.
• C) cause the equilibrium rate of interest to change from i₂ to i₁.
• D) cause the equilibrium quantity of funds supplied to fall.

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Definitions:

Dual Coding

refers to the process of combining verbal and visual information to enhance memory and learning.

Memory Retrieval

The process of recalling or bringing back information from the memory system into conscious awareness.

Sensory Storage

A very short-term storage system for sensory information before it is processed further for encoding or discarding.

Visual Features

Attributes or aspects of a visual stimulus, such as shape, color, size, and texture, that can be perceived and recognized.