Which of the Following Is NOT an Example of a Supply

question 92

Multiple Choice

Which of the following is NOT an example of a supply shock?

• A)A drought in the Midwest
• B)A decline in natural gas prices following discovery of new fields
• C)The introduction of a new line of computer-controlled machine tools in manufacturing
• D)A substantial increase in federal government spending on medicare

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Definitions:

Long-Term Investments

Investments made by a company in bonds, stocks, or other financial assets, intended to be held for a period longer than a year.

Debt Investments-AFS

Available-for-sale debt investments represent debt securities that a company intends to hold for a period of time but may sell before maturity for capital management reasons.

Loss on Sale

The financial loss realized when the selling price of an asset is less than its carrying value on the balance sheet.

Available-For-Sale Securities

Debt or equity securities not classified as held-to-maturity or trading securities, and are purchased with the intention of selling before they mature.