If Foreign Income and Wealth Decrease,this Would Most Likely

question 78

Multiple Choice

If foreign income and wealth decrease,this would most likely

• A) not affect the market for loanable funds.
• B) cause the supply of loanable funds to increase.
• C) cause the supply of loanable funds to decrease.
• D) cause the demand for loanable funds to increase in order for foreigners to maintain consumption.
• E) cause the demand for loanable funds to decrease.

---

Definitions:

Turnover

A measure of a company's sales or revenues relative to the average value of its assets, inventory, or employees.

Return on Investment

A measure of the financial gain or loss on an investment relative to the amount of money invested.

Operating Assets

Assets used by an organization in its day-to-day operations to generate revenue, excluding investments and inventory.

Residual Income

The amount of net income an entity has after deducting all necessary expenses and required returns on investments, representing leftover earnings.