Which of the Following Would Be the Most Likely to Cause

question 251

Multiple Choice

Which of the following would be the most likely to cause an increase in the demand for loanable funds?

• A) a decrease in the interest rate
• B) an increase in savings
• C) a decrease in consumption
• D) an increase in government borrowing

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Definitions:

Depreciated

The process of allocating the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.

Appraised Value

An estimation of the fair market value of an asset or property, typically determined by a professional appraiser.

Boot

Additional value or cash that balances the value of the assets being traded in a barter or exchange transaction.

Fair Market Value

Fair Market Value is the estimated price at which an asset would change hands between a willing buyer and seller, neither being under compulsion to buy or sell and both having reasonable knowledge of the relevant facts.