If Technological Breakthroughs in the Internet Cause Large Numbers of Firms

question 132

Multiple Choice

If technological breakthroughs in the internet cause large numbers of firms to consider investment projects they hadn't previously thought of, then

• A) a shift in the supply of loanable funds will cause interest rates to rise.
• B) a shift in the supply of loanable funds will cause interest rates to fall.
• C) a shift in the demand for loanable funds will cause interest rates to rise.
• D) a shift in the demand for loanable funds will cause interest rates to fall.
• E) there will be an excess supply of loanable funds.

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Definitions:

Apparent Authority

Apparent authority refers to a situation where a reasonable person would understand that an agent has the authority to act on behalf of a principal, even if the agent does not have actual authority.

Business Expenses

Costs incurred in the operation of a business, which are typically deductible from the business income for tax purposes.

Personal Expenses

Outlays or expenditures that individuals make for personal, non-business activities, goods, or services.

Constructive Notification

Information or knowledge that is legally deemed to have been obtained by a party, even if not directly received, through recorded documents or public filings.