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.

---

Definitions:

Adjusting Entries

Entries in accounting journals, made at the termination of an accounting cycle, serve to apportion incomes and outlays to their actual occurrence period.

Unearned Revenue

Money received by an entity for a service not yet performed or a product not yet delivered. It is recorded as a liability until the service or product is delivered.

Net Income

The total profit or loss of a company after all revenues, expenses, and taxes have been accounted for.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life.