If People Have a Sudden Decrease in Confidence in the Open

question 68

Multiple Choice

If people have a sudden decrease in confidence in the open economy of the U.S.and no longer want to invest there,the:

• A)NCO increases,and the demand for loanable funds curve would shift right.
• B)NCO decreases,and the demand for loanable funds curve would shift left.
• C)NCO decreases,and the demand for loanable funds curve would shift right.
• D)NCO increases,and the demand for loanable funds curve would shift left.

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Definitions:

Variable Expenses

Costs that vary directly with the level of activity or production output, such as raw materials and direct labor.

Break-even Point

The point at which total costs and total revenues are equal, meaning there is no profit or loss.

Variable Expenses

Costs that vary directly with levels of production or sales volume, such as materials and labor.

Fixed Expenses

Recurring costs that do not vary with the volume of production or sales, similar to fixed costs.