If Expectations About the Future Don't Change at All, Then

question 29

Multiple Choice

If expectations about the future don't change at all, then an economic downturn will generally:

• A) decrease savings at a given interest rate and shift the supply curve for loanable funds to the left.
• B) increase savings at a given interest rate and shift the supply curve for loanable funds to the left.
• C) decrease savings at a given interest rate and shift the supply curve for loanable funds to the right.
• D) increase savings at a given interest rate and shift the supply curve for loanable funds to the right.

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Definitions:

Instinct Theories

Psychological theories suggesting that certain behaviors are innate and driven by evolutionary pressures.

Social Psychologists

Scientists who study how individuals' thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.

Aggression

Behavior aimed at causing harm or pain to others, which can be physical or verbal.

Norms

Established standards of behavior maintained by a society.