If Foreign Income and Wealth Decrease,this Would Most Likely

question 78

Multiple Choice

If foreign income and wealth decrease,this would most likely

• A) not affect the market for loanable funds.
• B) cause the supply of loanable funds to increase.
• C) cause the supply of loanable funds to decrease.
• D) cause the demand for loanable funds to increase in order for foreigners to maintain consumption.
• E) cause the demand for loanable funds to decrease.

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Definitions:

Social Optimum

The ideal state of allocation of resources where social welfare is maximized, taking into account all costs and benefits to society.

Fire Extinguishers

Fire extinguishers are active fire protection devices used to extinguish or control small fires, often in emergency situations.

Subsidized

Financial support provided by the government or other institutions to reduce the cost of services or commodities.

Tax

Compulsory financial charges or levies imposed by a government on individuals or entities to fund public spending and government operations.