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kherson [118]
2 years ago
14

Demand and supply in the market for​ _______ determine the​ long-term real interest rate. In the short​ run, a change in the​ __

_____ changes the equilibrium real interest rate.
Business
1 answer:
ale4655 [162]2 years ago
3 0

Demand and supply in the market for​ Loanable fund determine the​ long-term real interest rate. In the short​ run, a change in the​ Federal funds changes the equilibrium real interest rate.

<h3>What is federal funds?</h3>

Federal funds, often directed to as fed funds, exist as surplus reserves that commercial banks and other financial institutions deposit at regional Federal Reserve banks; these funds can be lent, then, to other market parties with inadequate cash on hand to satisfy their lending and reserve needs.

Loanable funds consist of household savings and/or bank loans. Because investment in new capital goods exists frequently made with loanable funds, the demand and supply of capital are often examined in terms of the demand and supply of loanable funds. In economics, the loanable fund's doctrine exists as a theory of the market interest rate. According to this procedure, the interest rate is specified by the demand for and supply of loanable funds. The term loanable funds contain all conditions of the credit, such as loans, bonds, or savings deposits.

Hence, Demand and supply in the market for​ the Loanable fund define the​ long-term real interest rate. In the short​ run, a change in the​ Federal funds alters the equilibrium real interest rate.

To learn more about federal funds refer to:

brainly.com/question/6270391

#SPJ4

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An investor purchased a "par bond" for $300 with the principal $300. Over n = 5 years the bond will pay 8% coupon annually. Find
Digiron [165]

Answer:

8%

Explanation:

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator  

Cash flow in year 0 = $-300

Cash flow each year from year 1 to 4 = \frac{8}{100} × $300 = $24

Cash flow in year 5 = $300 + 24 = $324

  IRR = 8%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

4 0
3 years ago
The Esposito Import Company had 1 million shares of common stock outstanding during 2021. Its income statement reported the foll
borishaifa [10]

Answer:

Explanation:

The preparation of the 2021 EPS presentation for the Esposito Import Company is shown below:

Income from continuing operations                           $7 million

Less: Loss from discontinued operations                  ($1.4 million)

Net income                                                   $5.6 million

Now the earning per share would be

Earning per share = (Net income) ÷ (Number of shares)

                              = ($5.6 million) ÷ (1 million shares)

                              = $5.6 per share

5 0
2 years ago
if are researchers is using data that are low in cost and save time which type of data is this likely to be?
olchik [2.2K]

Answer:

<h2>Secondary data</h2>

Explanation:

The data collected form the first hand sources by using interviews and surveys is called primary data. The secondary data is gathered from surveys and studies which have already been conducted by other people. Mostly researchers use secondary data in their project as the researcher doesn't have to spend time, energy and money in collecting them. They can devote their time to research instead of worrying about gathering data.

8 0
3 years ago
On January 1, Year 1. a company issues $100.000 of 8% bonds maturing in 10 years when the market rate of interest is 9%. The bon
Margarita [4]

Answer:

b) The company will incur a loss

Explanation:

The market rate at the time of issue = 9%, while coupon rate = 8%, it says bonds provide lesser return when compared to the market rate.  

At end of year 2 market rate drops to 6% which is lower than the Bond's coupon rate. Which means the bond's providing high return when compared to the market. So, company to retire the bonds need to pay more than the par value.

As company should retire these bonds more than par value, the company incur a loss.

Option 'B is correct

The company incur a loss

5 0
3 years ago
Operations, information, systems, and contingency management Modern management theorists recognize that multiple management appr
Arturiano [62]

Answer:

Fiedler's theory and others like it are called contingency theories, and they imply that the most effective management technique gets adjusted to every situation, focusing on tasks as subunits strategy, as a contingency factor is unexpected.

Explanation:

A contingency theory is an organizational theory of the unexpected, out of control factors, so there is not a best way to lead or to make decisions, there is, instead, a contingency that cannot be accurately predicted, being motivation and leadership, two of many independent variables of the contingency theory, and productivity, turnover and absenteeism are some dependent variables, allowing managers to bend policies or override the if necessary when reacting to problems, and wide discretion in decision-making as the theory´s basis states that leader's relations impact their effectiveness.

4 0
2 years ago
Read 2 more answers
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