Which of the Following Could Explain an Increase in the Equilibrium

question 49

Multiple Choice

Which of the following could explain an increase in the equilibrium interest rate and a decrease in the equilibrium quantity of loanable funds?

• A)The demand for loanable funds shifted right.
• B)The demand for loanable funds shifted left.
• C)The supply of loanable funds shifted right.
• D)The supply of loanable funds shifted left.

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Definitions:

Self-focus

The act of concentrating attention on oneself, often analyzing one’s own thoughts, feelings, and behaviors.

Instability

A condition of being variable or prone to change, often used to describe emotional or mental unpredictability in individuals.

Preconventional Level

According to Kohlberg, evaluating importance of individual needs and personal conscience in regard to maintenance of the social order.

Psychosocial Development

A framework created by Erik Erikson that outlines human development across eight stages, from infancy to late adulthood, focusing on social interactions and conflicts.