13. When an economy reduces its current consumption so as to purchase more capital goods, it is (a) reducing its investment. (b) engaging in specialization. (c) trading off its current consumption for future consumption. (d) driving up the CPI. 14. The protection of property rights is (a) a prerequisite for markets to efficiently allocate scarce resources. b) not necessary for economic growth. (c) is directly included in the calculation of GDP. (d) creating disincentives for production. 15. When a company raises money by issuing bonds, this is an example of (a) equity financing. (b) debt financing. (c) security investment. (d) financial intermediaries. 16. Suppose that the households in a country increase their saving and the business com- munity becomes more optimistic about the profitability of capital. How will this affect the market for loanable funds? (a) The equilibrium interest rate increases, and the equilibrium saving/investment in- creases. (b) The equilibrium interest rate increases, and the equilibrium saving/investment de