A Decrease in Saving That Leads to an Increase in the Interest

question 3

Multiple Choice

A decrease in saving that leads to an increase in the interest rate will

• A) decrease the amount of investment spending.
• B) only result in a surplus of loanable funds.
• C) shift the demand for loanable funds to the right, increasing net investment.
• D) shift the demand for loanable funds to the left, causing a decrease in investment.

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Definitions:

Aggressive Wishes

Intrapsychic desires or impulses towards acting out aggressions or hostilities, which may stem from personal conflicts or frustrations.

Primary Content

The main or essential subject matter of a communication, document, or media, which is central to its purpose or message.

Manifest Content

Freud’s term for the content of a dream as recalled by the dreamer.

Latent Content

Freud’s term for the underlying meaning of a dream.