Use the Following to Answer Question(s): Loanable Funds and Capital

question 26

Multiple Choice

Use the following to answer question(s) : Loanable Funds and Capital Markets

-(Exhibit: Loanable Funds and Capital Markets) A decrease in saving and a:

• A) subsequent rise in the supply of loanable funds is shown in Panel (c).
• B) fall in the supply of loanable funds is shown in Panel (c).
• C) subsequent increase in the demand for capital is shown in Panel(b).
• D) rise in the interest rate is shown in Panel (d) as a movement along the demand for financial capital curve from a lower interest rate to a higher interest rate.

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Definitions:

Net Sales

Total sales revenue less returns, allowances, and discounts.

Percentage Increase

A measure of the degree to which a quantity has grown compared to its previous value, expressed as a percentage.

Horizontal Analysis

Amounts of items compared on the same line of comparative financial reports. Horizontal analysis can also be in the form of a trend analysis.