What Changes Will a Shortage of Loanable Funds Induce in a Savings-Investment

question 106

Multiple Choice

What changes will a shortage of loanable funds induce in a Savings-Investment diagram in a closed economy?

• A)The demand for loanable funds curve will shift right, so the interest rate will rise.
• B)The supply of loanable funds curve will shift left, so the interest rate will fall.
• C)There will be no shifts of the curves, but the interest rate will rise.
• D)There will be no shifts of the curves, but the interest rate will rise

Recognize the role of sensation seeking in personality and its impact on behavior and relationships.

Identify and describe various behavior patterns, including fixed and unlearned behaviors across species.

Comprehend the arousal motive and its influence on human actions and decision-making.

Explain the drive-reduction theory of motivation and how it relates to human needs and behaviors.

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Definitions:

Marketing Analyses

Comprehensive evaluations that use market data, trends, and strategies to identify the viability of a new product, the effectiveness of a marketing plan, or the potential for market growth.

Net Present Value (NPV)

NPV is the difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of an investment or project.

Unbiased Cash Flows

Cash flows projection that is objective and has not been influenced by personal bias, making them fair estimates for analysis.

Overstate Cash Inflows

The act of exaggerating or reporting higher amounts of money coming into a business than what is actually being received, which can lead to a misleading financial position.