Which of the Following Would Most Likely Happen in the Market

question 5

Multiple Choice

Which of the following would most likely happen in the market for loanable funds if the government were to increase the tax on interest income?

• A)The supply of loanable funds would shift right.
• B)The demand for loanable funds would shift right.
• C)The supply of loanable funds would shift left.
• D)The demand for loanable funds would shift left.

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Definitions:

FIFO Method

"First In, First Out," an inventory valuation method where goods first received are the first to be sold, assuming costs of earliest goods are those expensed first.

Physical Flow

The movement of physical goods or materials within a production process or supply chain.

Ending Inventory

The total value of all the goods available for sale at the end of an accounting period.

Average Unit Cost

The cost incurred for producing a single unit, calculated by dividing the total cost of production by the number of units produced.