An Increase in the Interest Rate,other Things Constant,will

question 42

Multiple Choice

An increase in the interest rate,other things constant,will:

• A)shift the demand for loanable funds curve to the right.
• B)shift the demand for loanable funds curve to the left.
• C)decrease the quantity of loanable funds supplied.
• D)decrease the quantity of loanable funds demanded.
• E)shift the supply of loanable funds curve to the right.

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Definitions:

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.

James-Lange Theory

A theory of emotion proposing that emotions result from the perception of bodily reactions to stimuli, suggesting that physiological arousal precedes the emotional experience.

Evolutionary Theory

A scientific theory that explains the diversity of life on Earth through mechanisms such as natural selection and genetic mutation over time.

Two-Factor Theory

A psychological theory proposing that emotional experiences arise from a combination of a state of physiological arousal and a cognitive interpretation of that arousal.