-In the Above Figure, Technological Progress That Increases the Expected

question 174

Multiple Choice

-In the above figure, technological progress that increases the expected profit will

• A) have no effect on the demand for loanable funds curve.
• B) make the demand for loanable funds curve become horizontal.
• C) shift the demand for loanable funds curve leftward.
• D) shift the demand for loanable funds curve rightward.

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Definitions:

Tax Rate

The percentage of income or value that is collected by the government as tax.

MACRS Depreciation

A method of depreciation in the U.S. that allows for a faster write-off of assets under the tax code.

Incremental Annual Cash Flow

The additional cash flow generated by a company from taking on a new project, calculated as the difference between the project's cash inflows and outflows.

Tax Rate

The rate at which taxes are levied on the income of a person or business.