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What Happens to Each of the Following If the Supply

question 133

Short Answer

What happens to each of the following if the supply of loanable funds shifts right?
A. the interest rate
B. net capital outflow
C. the exchange rate


Definitions:

Par Value

The nominal or face value of a stock or bond, as stated by the issuing company, that has no direct correlation to the market value.

Corporate Existence

The state of being recognized as a legal entity that is separate from its owners, enabling the corporation to own assets, incur liabilities, and enter into contracts.

Business Combination

A transaction or other event in which an acquirer obtains control of one or more businesses.

Common Stock

Equity ownership in a corporation, giving shareholders voting rights and a share in the company's profits through dividends.

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