Which of the Following Would Normally Be Expected to Result

question 26

Multiple Choice

Which of the following would normally be expected to result in an increase in the supply of funds,all else equal?
I. The perceived riskiness of all investments decreases.
II. Expected inflation increases.
III. Current income and wealth levels increase.
IV. Near term spending needs of households increase as energy costs rise.

• A)II and III only
• B)I and IV only
• C)I,II,III,and IV
• D)I and III only
• E)II,III,and IV only

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Definitions:

Theory Of Constraints

A manufacturing strategy that focuses on reducing the influence of bottlenecks (constraints) on production processes.

Product Cost Method

A costing technique used to determine the expense associated with producing a product, including direct labor, materials, and overhead.

Selling Expenses

Costs incurred directly and indirectly in making sales, including salaries, commission, advertising, and promotional materials.

Administrative Expenses

Operating expenses not directly tied to the production of goods or services, such as salaries of administrative staff, office supplies, and utilities.