An Increase in Input Prices Will Cause

question 85

Multiple Choice

An increase in input prices will cause

• A)AD to increase (move to the right).
• B)AD to decrease (move to the left).
• C)AS to increase (move to down and to the right).
• D)AS to decrease (move to up and to the left).

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Definitions:

Effective Interest Rate

The rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument or a shorter period to the net carrying amount of the financial asset or financial liability.

Bond Issue Costs

Expenses associated with issuing bonds such as underwriting fees, legal fees, and registration fees, which are often amortized over the life of the bond.

Maturity Value

The total amount that will be paid to an investor at the end of a fixed income security's term, including principal and interest.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) for the preparation of public company financial statements globally.