In Which of the Following Cases Would the Supply of Loanable

question 31

Multiple Choice

In which of the following cases would the supply of loanable funds curve shift rightward?

• A) Joe is worried about cutbacks at his firm so his expected future income falls.
• B) In June, Sally learns that at year's end she will receive a bonus that will double her current salary.
• C) The stock market booms so people's wealth increases.
• D) The economy moves into a recession.
• E) Investment demand increases.

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Definitions:

Claim Forms

Claim Forms are documents used in the healthcare industry by patients or providers to request payment or reimbursement from health insurance companies for services rendered.

Long Run

A period wherein all factors of production and costs are variable, allowing firms to adjust all inputs to reach a desired output level.

Short Run

The short run in economics is a period during which at least one factor of production is fixed, limiting the ability of businesses to adjust to market changes fully.

Average Fixed Cost

The fixed costs (costs that do not vary with output) divided by the quantity of output produced.