The Model of Supply and Demand Leads to the Prediction

question 106

Multiple Choice

The model of supply and demand leads to the prediction that low interest rates cause:

• A) an increase in housing prices, especially in cities with plenty of room for expansion.
• B) an increase in housing prices, especially in cities with limited land.
• C) a decrease in housing prices, especially in cities with plenty of room for expansion.
• D) a decrease in housing prices, especially in cities with limited land.

---

Definitions:

LIFO Method

An inventory management and valuation approach where the last items placed in inventory are the first ones sold.

GAAP

Generally Accepted Accounting Principles, a set of accounting standards and procedures used in the United States to ensure financial statements are consistent and transparent.

IFRS

International Financial Reporting Standards - a set of accounting guidelines that provide the basis for cross-border financial reporting.

Specific Identification

An inventory valuation method in which the cost of each specific item in inventory is tracked and used to calculate cost of goods sold.