Use the Following to Answer Questions

question 300

Multiple Choice

Use the following to answer questions:
Figure: Loanable Funds
-(Figure: Loanable Funds) Look at the figure Loanable Funds. Which of the following might produce a new equilibrium interest rate of 8% and a new equilibrium quantity of loanable funds of $150 billion?

• A)Consumption as a fraction of disposable income increases.
• B)Businesses become more optimistic about the return on investment spending.
• C)The federal government has a budget surplus rather than a budget deficit.
• D)There is an increase in capital inflows from other nations.

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Definitions:

January

The first month of the year in the Gregorian calendar, often associated with new beginnings and resolutions.

Budget

A detailed plan for the future that is usually expressed in formal quantitative terms.

Donations

Voluntary gifts of money or other resources given to organizations or individuals without expectation of return.

Shipping Container Refurbishment

The process of repairing and modifying used shipping containers for a new purpose.