If Technological Breakthroughs in the Computer and Software Industries Cause

question 1

Multiple Choice

If technological breakthroughs in the computer and software industries cause large numbers of firms to consider investment projects they hadn't previously thought of,

• A) the supply of loanable funds will shift rightward.
• B) the supply of loanable funds will shift leftward.
• C) the demand for loanable funds will shift rightward.
• D) the demand for loanable funds will shift leftward.
• E) an excess demand for loanable funds emerges and persists.

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Definitions:

Portfolio

A collection of investments held by an individual or institution, including stocks, bonds, commodities, and more, aimed at diversifying risk.

Required Return

The minimum expected return on an investment necessary for it to be considered a viable option, taking into account its risk level.

Dividend

A distribution of a portion of a company's earnings decided by the board of directors to its shareholders.

Risk Aversion

A preference for avoiding risk, where individuals or entities prioritize certainty and are reluctant to engage in investments with uncertainty.