Which of the Following Could Explain an Increase in the Interest

question 92

Multiple Choice

Which of the following could explain an increase in the interest rate and an increase in the equilibrium quantity of investment?

• A)the supply of loanable funds shifted right.
• B)the supply of loanable funds shifted left.
• C)the demand for loanable funds shifted right.
• D)the demand for loanable funds shifted left.

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Definitions:

Functional Currency

The monetary system used in the principal financial setting where a business functions, typically shown in its financial reports.

Exchange Rates

The valuation of one currency compared to another for the purpose of exchange.

Goodwill Impairment

The financial charge taken when the carrying value of goodwill on a company’s balance sheet exceeds its fair value, indicating that the value of acquired assets has decreased.

Functional Currency

The currency of the primary economic environment in which an entity operates and carries out its business transactions.