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Use the following to answer questions:
-(Figure: Loanable Funds) Use Figure: Loanable Funds. Which scenario might produce a new equilibrium interest rate of 4% and a new equilibrium quantity of loanable funds of $75 billion?
Forward Buy
A purchasing strategy where a buyer purchases larger quantities of goods in advance to take advantage of lower prices or to hedge against future price increases.
Profitability
The ability of a business to generate more revenue than the expenses incurred, resulting in a profit.
Manufacturing Capacity
The maximum amount of products a factory or production facility can produce within a given time period.
Inventory Costs
Expenses associated with holding and managing goods or materials until they are sold or used in production.
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