Use the Following to Answer Questions

question 10

Multiple Choice

Use the following to answer questions
Figure: Loanable Funds Contraction

-(Figure: Loanable Funds Contraction) Which of the following reasons could cause the supply curve for loanable funds to shift to the left from S_LF to S¹_LF in the figure?

• A) The economy is expected to go into a recession.
• B) An existing investment tax credit is abolished.
• C) The government ceases taxing interest earnings.
• D) Consumers become less patient.

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Definitions:

Schedule-induced Behavior

Behavior that is influenced by the schedule of reinforcement or punishment, such as fixed or variable intervals and ratios.

Reinforcement

A process in psychology where a behavior is made more likely to occur due to the consequences that follow it.

Fixed-ratio Schedule

A type of reinforcement schedule where a reward is given after a set number of responses, fostering a rapid response rate.

Flavor Aversion Learning

A learned response where an organism avoids a food because it associates the taste with illness or discomfort.