Refer to the Figure Below to Answer the Following Questions

question 137

Multiple Choice

Refer to the figure below to answer the following questions.

Figure 23.2.3
-In Figure 23.2.3, if the real interest rate is constant at 6 percent and and expected profit rises, the amount of loanable funds demanded will be

• A)less than $450 billion.
• B)$450 billion.
• C)between $300 billion and $450 billion.
• D)greater than $450 billion.
• E)zero.

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Definitions:

Selling Expenses

Costs incurred directly from the selling of products or services, such as advertising and sales staff salaries.

Depreciation

The methodical distribution of a physical asset's cost throughout its expected lifespan.

Cost Of Goods Sold

Expenses directly linked to the creation of products sold by a business, such as materials and workforce costs.

Merchandising Firm

A business that purchases finished products and sells them to consumers without altering the state of the product.