T. D. Goneworth, a financial services firm, makes people want their money and want it now....
T. D. Goneworth, a financial services firm, makes people want their money and want it now. If the firm is successful in advertising this message and convinces people to believe it, then, all else equal, T. D. Goneworth has:
A) Caused the supply of loanable funds to shift right
B) Equalized the real and nominal rates of interest
C) Increased the rate of inflation
D) Caused the supply of loanable funds to shift left
Homework Answers
If the firm is successful in advertising this message and convinces people to believe it, then, all else equal, T. D. Goneworth has caused people to increase their time preferences, this would caused the supply of loanable funds to shift left. Hence, option(D) is correct.
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T. D. Goneworth, a financial services firm, makes people want
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