Desired Level of the Capital Stock 
-Consider the two graphs above.Suppose rising fuel costs makes it more expensive to move goods to and from warehouses.This would ________ the desired level of inventories,as depicted in graph ________.
Definitions:
Interest-Bearing Note
A debt instrument that obliges the issuer to pay interest to the holder on the principal amount until maturity.
Forward Contracts
Financial derivatives that obligate the buyer to purchase, and the seller to sell, a particular asset at a predetermined future date and price.
Fair Value Hedge
A hedge of the exposure to changes in fair value of an asset or liability, or an unidentified firm commitment, that is attributable to a particular risk.
Cash Flow Hedge
A type of hedge that protects against the variability in cash flows arising from a particular risk, such as interest rate movements or currency fluctuations.
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