Which Combination of Events Could Have Caused the Equilibrium Interest

question 103

Multiple Choice

Which combination of events could have caused the equilibrium interest rate to fall and the equilibrium quantity of loanable funds (both borrowed and loaned) to rise?

• A) Firms are more pessimistic, and governments run fewer deficits.
• B) A baby boom begins, and investor confidence rises.
• C) People have lower time preferences, and governments run larger deficits.
• D) People have lower time preferences, and capital is more productive.
• E) More individuals are middle-aged, and income increases.

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Definitions:

Multiplexing

Used to describe data bus systems in which two or more controllers communicate with each other; reduces system hard wire and components while optimizing chassis performance.

Data Bus

Multiplex backbone consisting of a twisted wire pair.

Non-Dedicated Wire

A wire within an electrical system that is not reserved for a single specific use or function.

Acid Tanker

A specialized tank truck designed for transporting acidic substances safely, featuring materials and construction that resist corrosion and damage from acids.