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Nonamiya [84]
2 years ago
14

Suppose the government introduces a new incentive for individuals to save money for retirement. How would this affect the market

for loanable funds and the interest rate?.
Business
1 answer:
masya89 [10]2 years ago
5 0

The supply of loanable funds would increase and interest rates would fall.

For instance, they may lower or do away with taxes on savings interest. More people would be motivated to cut back on their present levels of consumption and increase their savings as a result of the enhanced tax benefits associated with saving.

This will result in a rise in the amount of loanable money available (shift to the right.) The interest rate at equilibrium will decrease. People and businesses will have more motivation to borrow as the interest rate declines, pushing up the demand curve and increasing the equilibrium amount of borrowing and lending in the market.

Learn more about interest rates here:

brainly.com/question/13324776

#SPJ1

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Vaseline, the world's most famous—and priciest—brand of petroleum jelly, wants to improve its financial performance (i.e. revenu
ohaa [14]

Answer:

Please consider the following explanation

Explanation:

Vaseline can improve its financial performance by doing some product differentiation, as the rest 15% are also selling petroleum jelly but at much lower costs than Vaseline, and to convince its customers to spend extra bucks to buy Vaseline, it needs to provide something extra.

Vaseline can incorporate extra ingredients like aloevera, or turmeric, etc, i.e. the beauty or health fashions prevalent in the market this information can be obtained by a thorough research of the beauty blogs available online.

Once the product has something extra, Vaseline can go ahead and market its product better based on the benefits of the product differentiation, and hence steam away market from the remaining 15% and increase its financial performance.

6 0
3 years ago
On April 1, 2019, a company paid the $1,350 premium on a three-year insurance policy with benefits beginning on that date. What
emmainna [20.7K]

Answer:

The insurance expense on the annual income statement for the year ended December 31, 2019 will be D. $337.50

Explanation:

The company paid the $1,350 premium on a three-year insurance policy.

The insurance expense per year = $1,350/3 = $450

From April 1, 2019 to December 31, 2019, the company had bought the insurance for 9 months.

The insurance expense on the annual income statement for the year ended December 31, 2019 = $450/12x9 = $337.5

6 0
3 years ago
Suppose that you are a member of the Board of Governors of the Federal Reserve System. The economy is experiencing a sharp rise
monitta

As a member of the Federal Reserve Board, in an inflationary situation I would suggest a change in the federal funds rate that would be accomplished by raising the base interest rate of the US economy. This would make bonds more attractive and people would stop consuming to invest in public debt securities. In addition, raising interest rates would discourage credit, causing banks to lend less. Since inflation is a monetary phenomenon caused by the excess of currency in circulation, these measures would have a downward effect on inflation, as they reduce the amount of money in circulation in the economy.

6 0
3 years ago
Rolland Poust is a sophomore in the College of Business at Scandia Tech. Last semester he took courses in statistics and account
nikklg [1K]

Answer:

3.5

Explanation:

Grade point average (GPA) is the summation of all the numbered grades obtained divided by the number of credits taken or total obtainable points multiply by the maximum point receivable for a course. This can be calculated as follows:

1. Calculation of Total Obtainable Points

Statistics = A × hrs = 4 × 3 = 12

Accounting = A × hrs = 4 × 3 = 12

History = A × hrs = 4 × 5 = 20

History of jazz = A × hrs = 4 × 2 = 8

Rules of basketball = A × hrs = 4 × 1 = 4

Total obtained points = 12 + 12 + 20 + 8 + 4 = 56

2. Calculation of Total Points Obtained

Statistics = A × hrs = 4 × 3 = 12

Accounting = A × hrs = 4 × 3 = 12

History = B × hrs = 3 × 5 = 15

History of jazz = B × hrs = 3 × 2 = 6

Rules of basketball = A × hrs = 4 × 1 = 4

Total Points Obtained = 12 + 12 + 15 + 6 + 4 = 49

3. Calculation of GPA

GPA = (Total Obtained Points ÷ Total Obtainable Points) × the points that A receives (i.e. maximum GPA)

= (49 ÷ 56) × 4

= 0.875 × 4  

= 3.50  

Therefore, Rolland Poust's GPA is 3.5 out of 4.

The measure of location that has just been calculated is mean. The mean is obtained by adding all the values and then divide it by the number of values.  

Grade point average (GPA) is similar to mean because GPA is the summation of all the numbered grades obtained divided by the number of credits taken.

6 0
3 years ago
"When a parent uses the partial equity method throughout the year to account for its investment in an acquired subsidiary, which
Sedaia [141]

Options for the first question:

a? Goodwill will be recognized if acquisition value exceeds fair value of net assets acquired.

b? Parent company net income will be less than controlling interest in consolidated net income when fair value of net assets acquired exceeds book value of net assets acquired.

c? Subsidiary net assets are valued at their book values before consolidating entries are made.

d? Parent company net income will exceed controlling interest in consolidated net income when fair value of depreciable assets acquired exceeds book value of depreciable assets.

e? Parent company net income will equal controlling interest in consolidated net income when initial value, book value, and fair value of the investment are equal.

Information regarding the second question:

Book Value Fair Value

Buildings (10-year life) $10,000 $8,000

Equipment (4-year life) $13,000 $17,000

Land $5,000 $12,000

In consolidation at January 1, 2017, what adjustment is necessary for Hogan's Equipment account?

Answer:

Answer to the first question:

  • B) Parent company net income will be less than controlling interest in consolidated net income when fair value of net assets acquired exceeds book value of net assets acquired.

Answer to the second question:

  • The fair market value of the equipment is higher than the book value, therefore the equipment account must increase by = $17,000 - $13,000 = $4,000

Explanation:

The partial equity method is used when the company's stake is not significant in the subsidiary or when the parent doesn't exercise operating control over the subsidiary.

3 0
3 years ago
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