Assume Households Become Thriftier.This Would Cause

question 112

Multiple Choice

Assume households become thriftier.This would cause

• A) the demand for loanable funds to increase.
• B) the supply of loanable funds to increase.
• C) both the demand and supply of loanable funds to increase.
• D) both the demand and supply of loanable funds to decrease.
• E) the supply of loanable funds to decrease.

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Definitions:

Expected Shortage

The anticipated deficit in supply of a product or resource, often calculated based on current inventory levels and projected demand.

Safety Stock

Additional inventory held to protect against stockouts caused by variations in supply and demand, ensuring that a sufficient quantity of goods is available for production or sale.

Average Flow Time

The average time that it takes for a product to go through the entire supply chain, from procurement of raw materials to the delivery of the final product.

Reorder Point

The inventory level at which a new order should be placed to replenish stock before it runs out.