Which of the Following Would Shift the Demand for Loanable

question 161

Multiple Choice

Which of the following would shift the demand for loanable funds to the right?

• A)income tax increases
• B)government expenditures increase
• C)the interest rate falls
• D)Congress and the president pass an investment tax credit

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Definitions:

Fixed Costs

Expenses that do not change in total as production volume increases or decreases, such as rent and salaries.

Safety Margin

The difference between the actual level of sales or production and the break-even point, measuring the cushion a company has before it incurs losses.

Break Even Point

The financial analysis term where total revenues equal total expenses, and there is no profit or loss.

Budgeted Revenue

The amount of income that a company plans or expects to generate over a certain period, often used for planning and performance evaluation purposes.