Refer to the Information Provided in Figure 11

question 60

Multiple Choice

Refer to the information provided in Figure 11.7 below to answer the questions that follow.
Figure 11.7
-Refer to Figure 11.7.If the demand for money curve shifts from to ,the equilibrium interest rate will

• A)decrease from 7% to 5%.
• B)increase from 5% to 7%.
• C)increase from 5% to 6%.
• D)remain at 5%.

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Definitions:

Merchandise Inventories

The total value of a company’s products currently available for sale, held by the business as assets.

Financing Activities

Activities that result in changes in the size and composition of the equity capital or borrowings of a company, as reported in the cash flow statement.

Treasury Stock

Treasury stock consists of shares that were issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Bonds Payable

Long-term debt instruments issued by a company to raise capital, with the promise to pay back with interest at a future date.