Because of a Widespread Fraud,people Have Decided Not to Use

question 73

Multiple Choice

Because of a widespread fraud,people have decided not to use their debit card for their purchases anymore.This will cause

• A)the LM curve to shift down and to the right.
• B)the LM curve to shift up and to the left.
• C)the IS curve to shift down and to the right.
• D)the IS curve to shift up and to the left.

Comprehend the importance and limits of diversification in managing investment risk.

Evaluate risk management strategies including insurance, diversification, and obtaining information.

Appreciate the value of information in uncertain decision-making scenarios.

Understand the economic principles behind supply and demand for risky assets.

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Definitions:

Gross Margins

A company's revenue minus its cost of goods sold, expressed as a percentage, indicating the percentage of sales revenue that turns into profit.

Opening Inventory

The value of a company's inventory at the beginning of its accounting period, which includes raw materials, work-in-progress, and finished goods ready for sale.

Net Book Value

The value of an asset as recorded on the balance sheet, subtracting accumulated depreciation or amortization from its original cost.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the consumption or wear and tear of the asset.