Which Combination of Events Could Have Caused the Equilibrium Interest

question 149

Multiple Choice

Which combination of events could have caused the equilibrium interest rate to rise and the equilibrium quantity of loanable funds (both borrowed and lent) to fall?

• A) A baby boom begins,and investor confidence falls.
• B) A baby boom begins,and investor confidence rises.
• C) People have lower time preferences,and governments run larger deficits.
• D) People have lower time preferences,and capital is more productive.
• E) A baby boom begins,and people have higher time preferences.

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Definitions:

Active Touching

The process of using one’s own touch or motion to explore objects and environment, playing a critical role in sensory perception.

Thalamus

A structure within the brain that acts as a relay station for incoming sensory information, directing it to the appropriate areas in the cortex for processing.

Cerebral Cortex

The outer layer of nerve tissue of the cerebrum of the brain, playing a key role in memory, attention, perception, cognition, awareness, thought, language, and consciousness.

Perceptual Cue

Environmental signals or objects that are used to guide perception or understanding of a particular situation or setting.