Use the Following to Answer Questions

question 330

Multiple Choice

Use the following to answer questions :
Figure: Crowding Out
-(Figure: Crowding Out) If the supply of loanable funds curve shifts to the right, the result will be a(n) _____ in the total amount of borrowing and a(n) _____ in the interest rate.

• A)increase; increase
• B)decrease; decrease
• C)increase; decrease
• D)decrease; increase

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Definitions:

Cost

The amount of money required to purchase or produce something, including materials, labor, and overhead expenses.

Appropriated Retained Earnings

Appropriated retained earnings are portions of retained earnings that are set aside for specific purposes, such as future projects or debt repayment.

Retained Earnings

Retained Earnings represent a company's accumulated net income that is reinvested into the business or used to pay down debt, rather than distributed to shareholders as dividends.

Dividends

Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.