Technological Change Can Increase the Demand for Loanable Funds Because

question 16

Multiple Choice

Technological change can increase the demand for loanable funds because it

• A)lowers the interest rate.
• B)increases people's expected future disposable income.
• C)can increase the expected profit.
• D)has little effect on production cost.
• E)decreases the need for additional equipment.

---

Definitions:

Sales Returns

Transactions where customers return previously purchased merchandise, leading to a debit to the sales returns account and a credit to accounts receivable or cash.

Gross Sales

The gross sales income of a business before subtracting any returns, allowances, or discounts.

Credit Sales

Sales transactions where payment is not received at the time of purchase but is instead deferred to a later date.

Cash Sales

Transactions where goods or services are paid for with cash at the time of the sale.