The Supply of Loanable Funds Would Shift to the Right

question 68

Multiple Choice

The supply of loanable funds would shift to the right if either

• A)tax reforms encouraged greater saving or the budget deficit became smaller.
• B)tax reforms encouraged greater saving or investment tax credits were increased.
• C)the budget deficit became larger or investment tax credits were increased.
• D)the budget deficit became larger or tax reforms discouraged saving.

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Definitions:

Gasoline Costs

The expense incurred from purchasing gasoline, often considered a significant variable cost for companies dependent on transportation.

Truck Drivers

Individuals who operate trucks to transport goods and materials from one location to another.

Straight-Line Depreciation

A method of calculating the depreciation of an asset, where the asset's cost is evenly spread over its useful life.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and can be easily identified and measured.