[:l D 16. Based on the relationship between consumption and income, someone in his or her "prime earning years\" is most 0 likely a saver. O likely a borrower. O likely a foreigner. O concerned about nominal rather than real interest rates. 0 likely just out of college. I] D 19. Assume that the demand and supply of Ioanable funds both decrease. This would cause the equilibrium 0 quantity of Ioanable funds to decrease and the equilibrium interest rate to increase. 0 quantity of Ioanable funds to increase and the equilibrium interest rate to decrease. 0 quantity of Ioanable funds to decrease. but the effect on the equilibrium interest rate would be indeterminate. 0 interest rate to increase, but the new equilibrium quantity would be indeterminate. 0 interest rate to decrease, but the new equilibrium quantity would be indeterminate. E] D 20. The demand and supply of Ioanable funds increase simultaneously. This would cause the equilibrium 0 quantity of Ioanable funds to decrease and the interest rate to remain the same. 0 quantity of Ioanable funds to decrease, and the interest rate to increase. 0 quantity of Ioanable funds to increase, but the effect on the equilibrium interest rate would be indeterminate. 0 interest rate to increase and the quantity of Ioanable funds to remain unchanged. 0 interest rate to decrease, and the quantity of Ioanable funds to increase. [:l D 21. The demand for loanable funds decreases while the supply simultaneously increases. This would cause the equilibrium 0 quantity of loanable funds to decrease and the equilibrium interest rate to increase. 0 quantity of loanable funds to increase and the equilibrium interest rate to decrease. 0 quantity of loanable funds to increase, but the effect on the equilibrium interest rate would be uncertain. 0 interest rate to increase, but the new equilibrium quantity would be uncertain. 0 interest rate to decrease, but the new equilibrium quantity would be uncertain. 22. Which of the following reflects an accurate economic chain of events? O Investment finances savings, which causes the economy to shrink. Savings finances investment, which allows the economy to grow as a result of a larger capital stock. Savings finances future consumption, which allows future production to increase from a larger capital stock. O Investment finances future consumption, which allows incomes-and thus savings-to grow. O Higher interest rates increase savings, which causes consumption smoothing