If Savers Do Not Have Fixed Savings Goals, the Supply

question 123

Multiple Choice

If savers do not have fixed savings goals, the supply curve of loanable funds will generally be

• A)horizontal.
• B)downward sloping.
• C)vertical.
• D)upward sloping.

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Definitions:

Journal Entry

A record in the accounting journals that reflects the debit and credit effects of a financial transaction in the double-entry bookkeeping system.

Transaction Date

The specific date on which a financial transaction occurs, significant for recording and reporting purposes.

Account Balances

The amounts of money held in financial accounts, calculated as the funds deposited minus funds withdrawn, plus any interest or capital gains.

Prepaid Account

An account reflecting payments made in advance for goods or services, which are recognized as expenses when the goods or services are actually consumed.