Draw a correctly labeled loanable funds graph that shows what happens to real interest rates for each of the following situations: (You will have 3 graphs)
The government borrows money to fund a war.
Private investors become more optimistic about the economy.
The government raises personal income taxes (do not consider the change in consumer saving).
In the text box provided, enter the time and date you sent your graphs to your instructor. Please specify if you e-mailed or faxed the graph. Make sure your name and the assignment number are on your paper and that each graph is clearly marked with an a, b, or c. (30 points)

Answers

Answer 1

Answer:

1. a) War increases demand for loanable funds, demand curve shifts RIGHT. (Increase in real interest rate)

b) Private investors are optimistic about the economy (i.e. investment opportunities). Demand for loanable funds increases, demand curve shifts RIGHT. (Increase in real interest rate)

c) Tax increase means a decrease in the supply about loanable funds. Supply curve shifts LEFT. (Increase in real interest rate)

2. would most likely increase the supply of loanable funds. If Americans are saving more, then they are spending less money and investing more of it. Remember--saving does not mean "not using it". It means investing it instead of consuming.

3. The interest rate will fall. There is a surplus of loanable funds and the real interest rate will reflect this surplus by falling.

4. decrease in the demand for loanable funds. When output decreases, the return on investment for new projects decreases and investors are less in need of money to fund their ventures.

5. decrease the supply for loanable funds. If they are consuming more, they are saving less.

6. Increase / Decrease. When interest rates increase, growth is reduced because funding economic ventures is now more costly. Sometimes the fed will increase interest rates when it anticipates inflation to increase in order to mitigate economic growth.

Hope this was helpful!

Explanation:


Related Questions

If the current price of a stock is P=40, its β=1.25, and the expected rate of return of the market portfolio is r¯M=0.13, what does CAPM predict for the price of the stock in a year? Use rf=0.05 as the risk-free rate.

Answers

Answer:

im sorry

Explanation:

Magee Company's stock has a beta of 1.20, the risk-free rate is 4.50%, and the market risk premium is 5.00%. What is Magee's required return

Answers

Answer:

10.50%

Explanation:

Calculation for Magee's required return

Using this formula

Required return=Risk-free rate+Beta(Market risk premium)

Let plug in the formula

Required return= 4.50% + 1.20(5.00%) .

Required return=4.50%+6%

Required return= 10.50%

Therefore Magee's required return will beb10.50%

Keynes revolutionized economic theory by changing the explanation for what causes economic growth from aggregate _______ to aggregate _______.

a. demand; supply
b. supply; demand
c. cost; inflation
d. GDP; income

Answers

Answer:

b. supply; demand

Explanation:

Before Keynes, classical economists thought that aggregate supply was more important than aggregate demand in determining the overall economic level of a country. This was mainly because of the belief in say's law: the law stated that every offer creates its own deamand.

Keynes changed economics because he stated that demand and supply do not always reach equilibrium, and that demand is often insufficient, and it is the government job to stimulate demand through expansionary monetary and fiscal policy, like lowering interest rates and cutting taxes.

If you decide to take a break and go for a hike in order to focus less consciously on the creative process, which stage is the creative process are you experiencing?

Answers

Answer: Incubation

Explanation: In the incubation stage the person moves away from the problem and gives space to the mind to search for a solution. An example is going for a walk to relax your mind a bit and ideas flow better.

pencer Co. has a $300 petty cash fund. At the end of the first month the accumulated receipts represent 553 for delivery expenses, $167 for merchandise inventory, and $22 for miscellaneous expenses. The fund has a balance of $58. The journal entry to record the reimbursement of the account includes a:_________.a) Debit to Petty Cash for $300. b) Debit to Cash Over and Short for $58 c) Credit to Cash for $242 d) Credit to Inventory for $167e) Credit to Cash Over and Short for $58.

Answers

Answer:

c) Credit to Cash for $242

Explanation:

Petty cash, beginning = $300

Delivery expense = $53

Merchandise inventory = $167

Miscellaneous expense = $22

Petty cash, Ending = $58

The journal to record the reimbursement of the accounts will be:

Event    Account Title and Explanation   Debit    Credit

1           Delivery expense                            $53  

           Merchandise inventory                   $167  

           Miscellaneous expense                  $22

                    Cash                                                   $242

Tinker's cost of goods sold in the year of sale (2019) was $750,000 and 2018 cost of goods sold was $770,000. The inventory at the end of 2019 was $188,000 and at the end of 2018 the inventory was $208,000. Tinker's average number of days to sell its inventory during 2019 is closest to: (Use 365 days a year.)

Answers

Answer:

96.3 days

Explanation:

Inventory turnover is calculated as;

= ( Average inventory / cost of goods sold ) × 365

Where,

Average inventory = (Beginning inventory + Ending inventory) / 2

Average inventory = ($208,000 + $188,000) / 2

Average inventory = $198,000

Therefore,

Inventory turnover = ($198,000 / $750,000) × 365

Inventory turnover = 96.3 days

The average number of days for Tinker to sell it's inventory during 2019 is closest to 96.3 days

Suppose that you buy a 1-year maturity bond with a coupon of 7% paid annually. If you buy the bond at its face value, what real rate of return will you earn if the inflation rate is 4%

Answers

Answer:

the real rate of return is 2.88%

Explanation:

The computation of the real rate of return is shown below:

As we know that

Real rate of return is

= {(1 + nominal rate of return) ÷ (1 - inflation rate)} - 1

= {(1 + 0.07) ÷ (1 + 0.04)} - 1

= 2.88%

Hence, the real rate of return is 2.88%

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

Which of the following best explains how the rise of machinery created an unfriendly relationship between industrialists and their employees?
A. The industrialist earned his income from the work of others.
B. There was a lack of unions.
C. The employees were underpaid.

Answers

Answer:

C

Explanation:

In as much as these are the only options given, then there has to be an answer there. Even though I fancy there being another answer.

But I'd say, the closest to the reason from the aforelisted is that the employees were underpaid. Since the advent of machineries, truth is that there wasn't going to be need for employees. This is because machines tend to have a much better output, better efficiency and won't need to be paid monthly in wages.

Since there isn't need for employees again, the industrialist tend to underpay the employees because they don't see their useful in the first instance

The rise of the use of machine is on the increase. The best explanation as to how the rise of machinery created an unfriendly relationship between industrialists and their employees is the employees were underpaid.

The industrialists did treat their workers bad.  They make sure to keep wages as low as ever. Their attitude towards their employee was like if employee did not like the pay, the long hours and other working conditions he could quit and go to other places.

They were super-rich, living in great homes, living life lavishly abut their employees were paid little sum as if they do not have any choice.

Learn more about Industrialist from

https://brainly.com/question/10230728

Renoir Associates has declared a​ $49,000 cash dividend to shareholders. The company has​ 4,000 shares of ​$16​par, ​6% preferred stock and​ 11,000 shares of ​$16par common stock. The preferred stock is noncumulative. How much will be distributed to the preferred and common stockholders on the date of​ payment?

Answers

Answer:

Preferred stock dividend is paid our before common dividends are paid out. Preferred dividends are;

= 4,000 * 16 * 6%

= $‭3,840‬

Common Stock Dividends

= 49,000 - ‭3,840‬

= $‭45,160‬

Colleges often rely heavily on raising money for an "annual fund" to support operations. Alumni are typically solicited for donations to the annual fund. Studies suggest that the graduate’s annual income is a good predictor of the amount of money he or she would be willing to donate, and there is a reasonably strong, positive, linear relationship between these variables. In the studies described:

Answers

Answer: size of alum's donation to the annual fund is the response variable

Explanation:

Considering the annual income is a good predictor of the amount of money he or she would be willing to donate, and there is a reasonably strong, then the study indicated that the size of alum's donation to the annual fund is the response variable

who developed the revealed preference theory?
In economics

Answers

Answer:

In 1938 Samuelson presented revealed preference theory as an alternative to utility theory, while in 1950, Samuelson took the demonstrated equivalence of the two theories as a vindication for his position, rather than as a refutation.

Answer:

Samuelson developed the revealed preference theory.

Zebco Inc is evaluating a project that has a cost of $1,000 and will produce end-of-year net cash inflows of $500 per year for 3 years. The required rate of return for this project's is 10 percent. The difference between the project's IRR and its MIRR is closest to:_________.
a. 5.09%
b. ​5.75%
c. ​4.31%

Answers

Answer:

a. 5.09%

Explanation:

initial outlay = -$1,000

cash flow 1 = $500

cash flow 2 = $500

cash flow 3 = $500

the simplest way to determine the IRR and MIRR is to use an excel spreadsheet and the IRR and MIRR functions:

IRR = 23.38%

in order to us the MIRR formula, we must use the 10% rate as both financing and reinvestment rates.  

MIRR = 18.29%

difference between them = 23.38% - 18.29% = 5.09%

In a monopolistically competitive industry, price:______

a. is most likely a bit higher than the competitive market price because of the cost of variety.
b. will exceed the monopoly price due to the destructiveness of competitive forces.
c. will be lower than the competitive price due to cost savings.
d. is contingent on the behavior of other firms because they are mutually interdependent.

Answers

Answer:

a

Explanation:

In a monopolistically competitive industry, price is most likely a bit higher than the competitive market price because of the cost of variety.

In a monopolistically competitive market, firms tend to set their prices to be higher than those of the marginal cost. This invariably translates to the fact that market is never really able to be productively efficient.

Firms in monopolistically competitive markets tend to wield the same power, since they're all price makers, they have a low degree of market power.

The combination of debt financing and equity financing that maximizes a firm's value is known as its:

Answers

Answer:

optimal capital structure

Explanation:

optimal capital structure can be regarded as a combination of

of debt and equity financing which brings about maximization of amarket value in a firm. It should be noted that optimal capital structure is the combination of debt financing and equity financing that maximizes a firm's value.

A stock has a beta of 1.2. Suppose the expected market risk premium (EMRP) is 6% and the risk-free rate is 1%. What is this stock's expected return according to the CAPM

Answers

Answer:

7%

CAPM = 1% + [6% - 1%](1.2) = 1% + 6% = 7%

A snack manufacturer discovers that they must increase the salt content of chips by 14 milligrams before about 50 percent of their consumers notice the change. A clever intern points out that this is an example of:

Answers

Answer:

difference threshold

Explanation:

Difference threshold is use by businesses or effectively reduce cost without affecting their profit margin .

It is the minimum amount of change that is required to make consumers of a product to notice the change 50% of the time.

In the given scenario the snack manufacturer discovers that they must increase the salt content of chips by 14 milligrams before about 50 percent of their consumers notice the change.

A simple random sample of 700 individuals provides 200 Yes responses. a. What is the point estimate of the proportion of the population that would provide Yes responses (to 2 decimals)? b. What is your estimate of the standard error of the proportion (to 4 decimals)? c. Compute the 95% confidence interval for the population proportion (to 4 decimals).

Answers

Answer and Explanation:

A. The point estimate of individuals that would provide yes responses is the sample proportion. The sample proportion is calculated by dividing number of yes responses by sample size:

p = x/n = 200/700= 0.2857

B. The standard error of the population is the square root of the product of the point estimate and it's complement divided by the sample size given by

√p(1-p)/n

=√0.2857(1-0.2857)/700= 0.0170

C. For confidence level 95%, z score is calculated 1-0.95= 0.05/2= 0.025

Z score checked under the table = 1.96

Boundaries=

P-1.96 *standard error and p+1.96 *standard error

= 0.2857-1.96*0.0170= -0.25238

=0.2857+1.96*0.0170= 0.31902

Note : BODMAS demands we multiply first in the above calculation before subtraction or addition.

A portfolio has 70 shares of Stock A that sell for $30 per share and 125 shares of Stock B that sell for $17 per share. (a) What is the portfolio weight of Stock A?(b) What is the portfolio weight of Stock B?

Answers

Answer:

Portfolio weight of Stock A=49.70%

Portfolio weight of Stock A=50.29%

Explanation:

Calculation for the portfolio weight of Stock A and Stock B

First step is to calculate the total amount invested in both portfolio weight of Stock A and Stock B

Stock A and Stock B Total amount invested=

(A 70 shares*$30 per share)+ (B 125 shares*$17 per share)

Stock A and Stock B Total amount invested=$2,100+$2,125

Stock A and Stock B Total amount invested=$4,225

Now let calculate the PORTFOLIO WEIGHT OF STOCK A

Using this formula

Portfolio weight of Stock A=Stock A/Stock A and Stock B Total amount invested

Let plug in the formula

Portfolio weight of Stock A=(70 shares*$30 per share)/$4,225

Portfolio weight of Stock A=$2,100/$4,225

Portfolio weight of Stock A=0.4970*100

Portfolio weight of Stock A=49.70%

Therefore the Portfolio weight of Stock A

will be 49.70%

Calculation for PORTFOLIO WEIGHT OF STOCK B

Using this formula

Portfolio weight of Stock B=Stock B/Stock A and Stock B Total amount invested

Let plug in the formula

Portfolio weight of Stock B=(125 shares*$17 per share)/$4,225

Portfolio weight of Stock B=$2,125/$4,225

Portfolio weight of Stock B=0.5029*100

Portfolio weight of Stock B=50.29%

Therefore the Portfolio weight of Stock will be 50.29%

In a single period system, the target ________ is the balancing point between shortage costs and excess costs.

Answers

Answer: service level

Explanation:

A single period inventory model typically occurs to the organizations that order one-time items. In this case, such organizations can only get the right quantity when they order once in order to prevent loss.

In a single period system, the target service level is the balancing point between shortage costs and excess costs.

When operating in a constrained environment, which products should be produced? a. products with the highest contribution margin per unit b. products with the highest contribution margin per unit of the constrained process c. products with the highest selling price d. products with the lowest allocated joint cost

Answers

Answer: B. products with the highest contribution margin per unit of the constrained process.

Explanation:

When operating in a constrained environment, the products that should be produced are the products with the highest contribution margin per unit of the constrained process.

This is essential for the company to maximize its total contribution margin. This in turn will help the company in realizing revenue and also maximizing profit.

ABC company had 8,000 in accounts receivable on Dec. 31, 2019. However, the company estimated that 2,000 of them would become bad debt. The company recorded the 2,000 as bad debt. What is the impact on the financial statement?

Answers

Answer:

Net income is reduced by 2,000 and the net value of receivables on balance sheet reduced by 2,000

Explanation:

Since it is given that there is $8,000 in account receivable out of which $2,000 would be estimated and recorded as a bad debt

So here the bad debt expense is recorded that means the expenses are increased that ultimately reduced the net income also at the same time the amount of receivable would also decreased by $2,000

Therefore the same is to be considered

Trevor Ang holds a $400,000 portfolio consisting of the following stocks:

Stock Investment Beta
A $100,000 1.40
B $70,000 1.60
C $30,000 1.10
D $200,000 1.00
Total $400,000

What is the portfolio's beta?

Answers

Answer:

Portfolio beta = 1.2125

Explanation:

The portfolio beta is a function of the weighted average of the individual stocks' betas that form up the portfolio. To calculate the beta of a portfolio, we use the following formula,

Portfolio Beta = wA * Beta of A  +  wB * Beta of B  + ... + wN * Beta of N

Where,

w is the weight of each stock

Portfolio Beta = 100000/400000 * 1.4  +  70000/400000 * 1.6  +  

30000/400000 * 1.1  +  200000/400000 * 1

Portfolio beta = 1.2125

If the European subsidiary of a U.S. firm has net exposed assets of 750,000 Euros, and the euro drops in value from $1.30/euro to $1.20/ Euro the U.S. firm has a translation:__________

a. gain of $75,000
b. loss of $75,000
c. gain of $65,000
d. loss of 546,923

Answers

The correct answer is:

b. loss of $75,000


(2-3 statements answer only) I'll give brainliesr.

•What market/s do we consider when it comes to raw materials?​

Answers

Answer:

factor market

Explanation

Lemme know if I'm wrong :/

Donnegan Company reported operating expenses of $325,000 for 2020. The following data were extracted from the company’s financial records: 12/31/19 12/31/20 Prepaid Expenses $ 60,000 $69,000 Accrued Expenses 210,000 255,000 Accounts Payable 300,000 350,000 On a statement of cash flows for 2020, using the direct method, cash payments for operating expenses should be:___________.

Answers

Answer:

cash payments for operating expenses should be $329,000

Explanation:

Cash Payments for operating expenses is included in the Cash Flow from Operating Activity Section of the Statement of Cash Flows when the Direct Method of preparing this statement is selected.

This is calculated as follows :

Cash Payments for operating expenses

Operating expenses                                                               $325,000

Adjustment of changes in Working Capital

Increase in Prepaid Expenses ($69,000 - $ 60,000)              $9,000

Increase in Accrued Expenses ($255,000 - $210,000)        $45,000

Increase in Accounts Payable ($350,000 - $300,000)       ($50,000)

Cash payments for operating expenses                              $329,000

An investor can invest money with a particular bank and earn a stated interest rate of 8.80%; however, interest will be compounded quarterly. What are the nominal (or stated), periodic, and effective interest rates for this investment opportunity? Interest Rates Nominal rate 8.80% Periodic rate 6.12% Effective annual rate 9.00%

Answers

Answer:

nominal interest rate = 8.8%

periodic interest rate = 2.2%

the effective interest rate = 9.09%

Explanation:

nominal interest rate is the rate given to the investor = 8.8%

periodic interest rate = nominal interest rate / total number of compounding periods per year = 8.8% / 4 = 2.2%

the effective interest rate = (1 + periodic interest rate)ⁿ - 1 = (1 + 8.8%/4)⁴ - 1 = (1 + 8.8%/4)⁴ - 1 = (1 + 2.2%)⁴ - 1 = 1.0909 - 1 = 0.0909 = 9.09%

Select the correct answer.
Restaurant supply companies handle deliveries of foods and goods to restaurants.
ОА.
True
OB.
False

Answers

Answer:

True

Explanation:

I took the test and this is the right answer. :-)

Find the equivalent taxable yield of the municipal bond for tax brackets of zero, 10%, 20%, and 30%, if it offers a yield of 4.50%

Answers

Answer and Explanation:

The computation of the equivalent taxable yield is shown below:

For zero = 4.50%

For 10% =  4.50 ÷ 0.90 = 5%

For 20% =  4.50 ÷ 0.80 = 5.625%

For 30% =  4.50 ÷ 0.70 = 6.43%

For 10%, for 20% and for 30% it would reduced the tax brackets by the same

like

for 10%

= 1 - 0.10

= 0.90

The Same applied for other ones

Therefore the above should be the answer

_____ set their own goals and inspect their own work, often hire their own replacements and prepare their own budgets.a) Virtual teams
b) Enlarged teams
c) Socio-technical teams
d) Self-managed teams

Answers

Answer:

HEY PLS DON'T JOIN THE ZOOM CALL OF A PERSON WHO'S ID IS 825 338 1513 (I'M NOT SAYING THE PASSWORD) HE IS A CHILD PREDATOR AND A PERV. HE HAS LOTS OF ACCOUNTS ON BRAINLY BUT HIS ZOOM NAME IS MYSTERIOUS MEN.. HE ASKS FOR GIRLS TO SHOW THEIR BODIES AND -------- PLEASE REPORT HIM IF YOU SEE A QUESTION LIKE THAT. WE NEED TO TAKE HIM DOWN!!! PLS COPY AND PASTE THIS TO OTHER COMMENT SECTIONS!!

Explanation:

HEY PLS DON'T JOIN THE ZOOM CALL OF A PERSON WHO'S ID IS 825 338 1513 (I'M NOT SAYING THE PASSWORD) HE IS A CHILD PREDATOR AND A PERV. HE HAS LOTS OF ACCOUNTS ON BRAINLY BUT HIS ZOOM NAME IS MYSTERIOUS MEN.. HE ASKS FOR GIRLS TO SHOW THEIR BODIES AND -------- PLEASE REPORT HIM IF YOU SEE A QUESTION LIKE THAT. WE NEED TO TAKE HIM DOWN!!! PLS COPY AND PASTE THIS TO OTHER COMMENT SECTIONS!!

Charging off the cost of a wastebasket with an estimated useful life of 10 years as an expense of the period when purchased is an example of the application of the

Answers

Answer:

E. materiality concept

Explanation:

The materiality concept refers to a concept in which it impacts the decisions of the user if there is any small impact. In other words, any small impact could change the user decisions with respect to the financial statement i.e. relevant and useful

Therefore according to the given situation, the Option E is correct

And all the other options are incorrect

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