If Consumers Decide to Increase Their Rate of Saving, the

question 148

Multiple Choice

If consumers decide to increase their rate of saving, the

• A)supply of loanable funds will decrease
• B)supply of loanable funds will increase
• C)demand for loanable funds will decrease
• D)demand for loanable funds will increase
• E)interest rate will increase

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Definitions:

Conformity

The act of changing one's behavior or beliefs in order to match those of others, typically as a result of real or imagined group pressure.

Door-In-The-Face Technique

A compliance method whereby a large request is made knowing it will be refused so that a subsequent, smaller request is more likely to be accepted.

Large First Request

A persuasion technique where a more significant request is made initially, expected to be refused, followed by a smaller request, which seems more reasonable by comparison.

Social Norms

Unwritten rules that govern the behavior of individuals within a society or group, guiding what is considered acceptable or unacceptable behavior.