If Foreign Entities Save Less and Governments Run More Deficits,we

question 114

Multiple Choice

If foreign entities save less and governments run more deficits,we would correctly say that

• A) the new equilibrium quantity of loanable funds would decrease,but we would be unable to tell if the new equilibrium interest rate would be higher or lower than the original.
• B) the new equilibrium quantity of loanable funds would increase,but we would be unable to tell if the new equilibrium interest rate would be higher or lower than the original.
• C) the new equilibrium quantity of loanable funds would be indeterminate,but we would be certain the new equilibrium interest rate would be higher than the original.
• D) the new equilibrium quantity of loanable funds would be indeterminate,but we would be certain the new equilibrium interest rate would be less than the original.
• E) based on this information and because both changes would affect the demand for loanable funds in the opposite way,we would be unable to say anything about the relationship of the new equilibrium interest rate and quantity to the original interest rate and quantity.

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Definitions:

Bystander Intervention

The act of stepping in to help someone who is in a difficult or dangerous situation when others present do not act.

Social Influence

The effect that the words, actions, or mere presence of other people have on our thoughts, feelings, attitudes, or behavior.

Cultural Imperatives

refer to the essential norms, values, and practices that are integral and unique to a specific culture, guiding its members' behavior and interactions.

Applied Social Psychology

The branch of psychology that deals with understanding and addressing social and practical problems through the application of psychological principles.