Technological Progress That Increases the Expected Profit Shifts the Demand

question 220

Multiple Choice

Technological progress that increases the expected profit shifts the demand for loanable funds curve

• A) leftward and reduces the real interest rate.
• B) rightward and increases the real interest rate.
• C) rightward and reduces the real interest rate.
• D) leftward and increases the real interest rate.

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Definitions:

Indirect Method

A way of calculating cash flows for the cash flow statement where net income is adjusted for non-cash transactions and changes in working capital.

Indirect Method

A way of preparing a cash flow statement where net income is adjusted for non-cash transactions, deferrals, and accruals to calculate cash flow from operating activities.

Net Income

The final amount a company retains after expenses and taxes have been removed from its overall revenue.

Operating Activities

Business actions that relate directly to the production, sale, and delivery of a company's products or services.