If We Start to Think That Medicare Will Pay for All

question 26

Multiple Choice

If we start to think that Medicare will pay for all of our medical needs as we age, then our likely actions will lead to:

• 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:

Target Firm

In mergers and acquisitions, the company that is being considered or has been chosen for a takeover by another company.

NPV

Net Present Value; a financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Shares Outstanding

Refers to the total number of shares issued by a corporation that are currently owned by investors, including restricted shares owned by company insiders.

Market Price

Market price is the current price at which an asset or service can be bought or sold in a marketplace.