As a Result of the Recession in 2008, the Default

question 122

Multiple Choice

As a result of the recession in 2008, the default risk increased. How did this change affect the loanable funds market?

• A) There was a movement up along the supply of loanable funds curve.
• B) There was a leftward shift in the supply of loanable funds curve.
• C) There was a movement down along the demand for loanable funds curve.
• D) There was a rightward shift in the supply of loanable funds curve.

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Definitions:

Social Psychologists

Experts who study how individuals think, influence, and relate to one another within the context of society.

Effective Functioning

The optimal operation of systems, organs, or processes, ensuring they perform their intended duties successfully and efficiently.

Automatic System

Part of the cognitive system that processes information effortlessly, quickly, and without conscious thought.

Deliberate System

A deliberate system involves processes and structures intentionally designed and maintained to achieve specific goals or outcomes.