If Time Preferences Increase

question 85

Multiple Choice

If time preferences increase,

• A) the demand for loanable funds will increase.
• B) the demand for loanable funds will decrease.
• C) the supply of loanable funds will increase.
• D) the supply of loanable funds will decrease.
• E) wealth will increase.

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Definitions:

Limited Liability Company

A company organization style that merges the protective limited liability of corporations with the advantageous pass-through taxation of sole proprietorships or partnerships.

State Law

consists of the laws and regulations enacted by the legislative bodies of individual states.

Passed Through

A term often used in finance and taxation to describe income, losses, or tax benefits transferred from one entity to another, such as in a pass-through entity.

Limited Liability Company

A business configuration that combines the beneficial limited liability of a corporation with the pass-through taxation system of partnerships or sole proprietorships.