Figure 26-4

question 114

Multiple Choice

Figure 26-4.On the horizontal axis of the graph,L represents the quantity of loanable funds in billions of dollars.
-Refer to Figure 26-4.The position and/or slope of the Supply curve are influenced by

• A)the level of public saving.
• B)the level of national saving.
• C)decisions made by people who have extra income they want to save and lend out.
• D)All of the above are correct.

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Definitions:

Consumption Goods

Goods that are used by consumers for personal use and satisfaction, not for production or investment.

Lollipops

A hard candy on a stick.

Candy Bars

Small confectionery items often consisting of chocolate and various fillings or toppings.

Budget Line

A graphical representation of all possible combinations of two goods that can be purchased with a given income and prices.