If Economic Expansion Is Expected to Decrease, the Demand for Loanable

question 17

Multiple Choice

If economic expansion is expected to decrease, the demand for loanable funds should ____ and interest rates should ____. ​

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

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Definitions:

Behave

To act in a manner that is considered appropriate or expected in a particular context or situation.

Straightforwardness

The quality of being direct, clear, and honest in communication without any ambiguity or evasion.

Evasiveness

The tendency to avoid direct answers or clarity, often to escape responsibility or hide the truth.

Cultural Dimension

An aspect of culture that can be measured relative to other cultures, such as individualism vs. collectivism, that helps in understanding the differences and interactions between cultures.