Use the Following to Answer Questions

question 123

Multiple Choice

Use the following to answer questions
Figure: Market for Loanable Funds

-(Figure: Market for Loanable Funds) If the interest rate is 5% in this market for loanable funds,then:

• A) savings exceeds investment by $200 million.
• B) savings exceeds investment by $100 million.
• C) savings exceeds borrowing demands by $200 million.
• D) savings exceeds borrowing demands by $100 million.

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Definitions:

Halo Effect

a type of cognitive bias where the perception of one positive quality in a person or thing influences the overall perception of that entity as positive.

Perceptual Distortion

Occurs when an individual's personal biases, prejudices, or expectations alter the way they perceive reality.

Impression Management

The practice of consciously controlling or manipulating the perception others have of an individual or organization.

Impression Management

The process by which individuals attempt to control the impressions others form of them, especially in social or organizational settings.