-In the Above Figure, the Economy Is at Point a on the Initial

question 162

Multiple Choice

-In the above figure, the economy is at point a on the initial supply of loanable funds curve SLF?. What happens if the interest rate rises?

• A) There is a movement to a point such as b on supply of loanable funds curve SLF?.
• B) The supply of loanable funds curve shifts rightward to a curve such as SLF?.
• C) The supply of loanable funds curve shifts leftward to a curve such as SLF?.
• D) none of the above

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Definitions:

Operating Activities

Activities that relate directly to the primary business operations, including revenues and expenses, cash flows, and transactions.

Direct Method

A cash flow statement preparation approach that lists major payments and receipts of cash from operational activities directly.

Indirect Method

An approach used in cash flow statements where net income is adjusted for non-cash transactions, deferred revenues, and expenses to calculate cash flow from operating activities.

Indirect Approach

A method used in cash flow statements where net income is adjusted for non-cash transactions and changes in working capital to calculate cash flow from operating activities.