Use the Following to Answer Questions

question 184

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 $75 billion?

• A)Capital inflows from foreign citizens decline.
• B)The federal government runs a budget deficit rather than a surplus.
• C)Profit expectations for business investments become less optimistic.
• D)The government eliminates taxes on income from interest earned.

---

Definitions:

Lower-Income

Referring to individuals or families that earn less revenue than the average in their society, often qualifying for certain types of government assistance.

O'Keeffe

An American artist, Georgia O'Keeffe, renowned for her large-format paintings of natural forms, especially flowers and landscapes.

New York, Night

A phrase evoking the vibrant nightlife and illuminated cityscape of New York City during the nighttime.

Imposing Mass

A structure or object that is large and impressive in appearance or size.