Which of the Following Is the Correct Way to Show

question 118

Multiple Choice

Which of the following is the correct way to show the effects of a new import quota?

• A)Shift the demand for loanable funds right, the supply of dollars for foreign exchange right, and the demand for dollars left.
• B)Shift the demand for loanable funds right, and the supply of dollars for foreign exchange left.
• C)Shift the demand for dollars for foreign-currency exchange left.
• D)Shift the demand for dollars for foreign-currency exchange right.

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Definitions:

Assets

Resources owned or controlled by a business that are expected to produce economic benefits.

Liabilities

Financial obligations or debts owed by a company to external parties or individuals, expected to be settled through the outflow of resources.

Materiality

An accounting principle that means the significance of financial information to decision makers, considering its size or its nature.

Relevance

The importance of financial information in making economic decisions, ensuring that the data presented affects the users' understanding and actions.