In Which Case(s)does(do)a Country's Demand for Loanable Funds Shift Right

question 97

Multiple Choice

In which case(s) does(do) a country's demand for loanable funds shift right?

• A)both an increase in the budget deficit and capital flight
• B)an increase in the budget deficit,but not capital flight
• C)capital flight,but not an increase in the budget deficit
• D)neither an increase in the budget deficit nor capital flight

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Definitions:

Profitability Index

A financial metric used to evaluate the desirability of an investment or project, calculated as the present value of future cash flows divided by the initial investment cost.

Discounted Payback

is a capital budgeting method that calculates the period of time required for the discounted cash flows from a project to recoup its initial cost.

Wholesale Book Outlet

A distributor that sells books in large quantities at discounted prices, primarily to retailers, libraries, and educational institutions.

Sit-down Restaurant

A dining establishment where customers are seated and served by waitstaff, offering a more formal dining experience compared to fast-food or counter-service restaurants.