A Decrease in Expected Returns on Investment Will Most Likely $$I _ { g }$$

question 276

Multiple Choice

A decrease in expected returns on investment will most likely shift the AD curve to the

• A) right because C will increase.
• B) left because C will decrease.
• C) right because I \[I _ { g }\] will increase.
• D) left because I \[I _ { g }\] will decrease.

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Definitions:

LIFO

"Last In, First Out," an inventory valuation method where the last items purchased are the first sold.

FIFO

"First-In, First-Out," an inventory valuation method where the costs of the earliest items purchased or produced are the first to be expensed.

Cost Of Goods Available

The total cost of inventory that a company has available to sell at any given time, calculated by adding the beginning inventory to the cost of goods purchased or manufactured.

FOB Destination

Freight terms indicating that the seller places the goods free on board to the buyer’s place of business, and the seller pays the freight.