The Table Below Shows Data for the U.S

question 61

Multiple Choice

The table below shows data for the U.S.

Between 2014 and 2015 the real interest rate ________ and caused a ________ the demand for loanable funds curve.

• A) increased; rightward shift
• B) decreased; movement down along
• C) increased; movement up along
• D) decreased; leftward shift

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Definitions:

Tax Considerations

Factors related to tax regulations and laws that impact financial decisions and strategies, influencing the net outcome of investments and operations of both individuals and corporations.

Motivate Mergers

Motivated Mergers refer to mergers driven by factors such as economies of scale, increased market share, or other strategic benefits that enhance the value of the merged entity.

Operating Merger

Occurs when the operations of two companies are integrated with the expectation of obtaining synergistic gains. These may occur due to economies of scale, management efficiency, or a host of other reasons.

Synergy

Occurs when the whole is greater than the sum of its parts. When applied to mergers, a synergistic merger occurs when the postmerger earnings exceed the sum of the separate companies’ pre-merger earnings.