In Which Case(s)does(do)a Country's Demand for Loanable Funds Shift Right

question 97

Multiple Choice

In which case(s) does(do) a country's demand for loanable funds shift right?

• A)both an increase in the budget deficit and capital flight
• B)an increase in the budget deficit,but not capital flight
• C)capital flight,but not an increase in the budget deficit
• D)neither an increase in the budget deficit nor capital flight

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Definitions:

Phineas Gage

A historically significant case in the study of neuroscience and psychology, where a man survived a severe brain injury that dramatically changed his personality and behavior.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to mind when evaluating a specific topic, concept, method, or decision.

Sunk Cost

A past expense that has already been incurred and cannot be recovered, which should not influence ongoing or future decisions.

Kahneman and Tversky

Psychologists known for their work on the psychology of judgment and decision-making, as well as behavioral economics.