Suppose Households Decide to Reduce Savings Because They Want to Enjoy

question 75

Multiple Choice

Suppose households decide to reduce savings because they want to enjoy more present time than future time.In this case,the loanable funds model predicts that

• A) interest rate goes down, and quantity of borrowed funds increases.
• B) interest rate goes down, and quantity of borrowed funds decreases.
• C) interest rate goes up, and quantity of borrowed funds decreases.
• D) interest rate goes up, and quantity of borrowed funds increases.

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Definitions:

Work Issues

Concerns or problems encountered in the workplace, which can range from interpersonal conflicts to systemic organizational problems impacting employee performance and well-being.

Age Difference

Refers to the variation in years between the ages of two or more individuals.

Constructive Relationship

A relationship characterized by positive support, mutual respect, and beneficial interactions for personal growth or organizational goals.

Subordinate

A person who is under the authority or control of another within an organization or hierarchy.