Jack and Jill Are Co-Owners of the Canadian Firm,Peak Petroleum

question 18

Multiple Choice

Jack and Jill are co-owners of the Canadian firm,Peak Petroleum Pipeline.Jack borrows money to build a pipeline from Alberta to the BC coast.Jill borrows money to build a pipeline in Venezuela.How does this affect the market for loanable funds in Canada?

• A) Jack increases the demand for loanable funds.
• B) Jill increases the demand for loanable funds.
• C) Jack increases the supply for loanable funds.
• D) Jill increases the supply of loanable funds.

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Definitions:

Markup Percent

The proportion added onto the purchase price of products to account for overhead costs and gain a profit.

Cost

The amount of money required to purchase something or the expenditure incurred to produce something.

Markup Percent

The percentage by which the cost of a product is increased to determine its selling price.

Cost

The amount of money required to purchase something or the expense associated with creating a product or service.