Use the Following to Answer Questions

question 253

Multiple Choice

Use the following to answer questions
Figure: Market for Loanable Funds 2
-(Figure: Market for Loanable Funds 2) If business taxes increase,the demand for loanable funds curve will shift from _____ to _____ and the new equilibrium will be at point _____,holding supply constant at S₀.

• A) D₀;D₁;c
• B) D₀;D₁;b
• C) D₁;D₀;a
• D) D₁;D₀;d

---

Definitions:

Balance Sheet

A financial statement that displays a company's financial position at a specific point in time, showing assets, liabilities, and stockholders' equity.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, including income statement, balance sheet, and statement of cash flows.

Proprietorship

A type of business entity owned and operated by one individual, where there is no legal distinction between the owner and the business.

Owner's Equity

The amount of ownership interest in a business, represented by the company's assets minus its liabilities.