Which of the Following Would Both Shift the Supply of Loanable

question 227

Multiple Choice

Which of the following would both shift the supply of loanable funds right?

• A)tax reforms encourage greater saving and the budget deficit falls
• B)tax reforms encourage greater saving and investment tax credits are increased
• C)the budget deficit rises and investment tax credits are increased
• D)the budget deficit rises and tax reform discourages saving

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of materials and labor.

Average Inventory

An accounting metric that estimates the value or the number of a particular good that a company has in stock over a specific period.

Return on Common Shareholders' Equity Ratio

A financial metric that measures a company's profitability by showing how much profit it generates with the money shareholders have invested, specifically focusing on common stockholders.

Profit Margin

A financial metric that measures the amount of profit a company earns per dollar of revenue, indicating the efficiency of the company in converting sales into profits.