If the Expected Gains on Stocks Rise, While the Expected

question 69

Multiple Choice

If the expected gains on stocks rise, while the expected returns on bonds do not change, then

• A)the demand curve for bonds will shift to the left.
• B)the supply curve for loanable funds will shift to the right.
• C)the demand curve for loanable funds will shift to the left.
• D)the equilibrium interest rate will fall.

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Definitions:

Specific Identification Method

An inventory valuation method that tracks the actual cost of each specific item of inventory to determine cost of goods sold and ending inventory.

Average-Cost Method

An inventory costing method that calculates the cost of goods sold and ending inventory value based on the weighted-average cost of all items.

Inventory Turnover

A ratio that shows how quickly a company's inventory is sold and replaced over a specific period, indicating the efficiency of inventory management.

Merchandisers

Businesses that purchase goods for resale to consumers, playing a vital role in the retail industry by moving products from manufacturers to the market.