Due to Expectations of Lower Inflation in the Future, We

question 1

Multiple Choice

Due to expectations of lower inflation in the future, we would typically expect the supply of loanable funds to ____ and the demand for loanable funds to ____.

• A)increase; decrease
• B)increase; increase
• C)decrease; increase
• D)decrease; decrease

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Definitions:

Similarity

The state or fact of being alike or having common features, often used to describe how objects, ideas, or individuals share common characteristics.

Reciprocity

A social norm dictating that people should return the help or kindness they receive from others.

Communicator

A person or device that transmits or exchanges information.

Audience

A group of individuals who gather to watch, listen to, or read a performance, presentation, or work of art.