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:

Phobias

Irrational and overwhelming fears of objects, creatures, or situations, often leading to avoidance behavior.

Paradoxical Intent

A cognitive therapy technique in which an individual deliberately practices or exaggerates a feared behavior or thought in order to diminish its power.

Aversive Therapy

A form of behavioral therapy that involves using unpleasant stimuli to reduce or eliminate undesirable behavior.

Reinforcement

In behavioral psychology, it refers to any stimulus which strengthens or increases the probability of a specific response.