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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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solong [7]

Answer:

C.

Explanation:

Based on the scenario being described within the question it can be said that in this circumstance the note is not negotiable because the note states the reason for the debt. Since the reason it stated it proves as to why the money needs to be paid to the individual and must therefore be paid in full on the date that has been listed.

5 0
2 years ago
ABC Co. had 600,000 shares of Common Stock, 40,000 shares of Convertible Preferred Stock, and $3,000,000 of 6% Convertible Bonds
AveGali [126]

Answer:

a. Net income for 2021                                               $1,600,000

Less: Preferred dividends                                          <u>$120,000  </u> (40000*$3)

Net income for Common Stockholders                    $1,480,000

Divide by Common Shares outstanding                   <u>600,000 </u>

Basic Earnings per share for 2021                             <u>$2.47      </u>

<u></u>

b. If company's preferred stock were convertible into common stock, diluted earnings per shares will also have to be calculated.

3 0
3 years ago
In the year 2010, the income per worker in the United States was $82,359 and the income per worker in South Korea was $54,315. T
zhenek [66]

Answer:

The difference in human capital explains $7,863 of the income per worker gap while the difference in physical capital explains $20,181 of the income per worker gap.

Explanation:

Human capital refers to the skills, knowledge, and efforts of the people in producing goods and services. It is also known simply as labor. Physical capital refers to the "man-made" goods that assist in production, including machinery, equipment, and technological items such as computers.

In the given scenario, the income per worker in the United States is $82,359 - $54,315 = $28,044 more than the income per worker in South Korea. This is explained by differences in both the level of technology (i.e. physical capital) and the capability of workers (i.e. human capital).

We are informed that the income per worker in South Korea would be $74,496 if it had the same level of technology as the United States. This means that $74,496 - $54,315 = $20,181 of the income per worker gap between the two countries is explained by differences in physical capital. Hence the remaining difference of $28,044 - $20,181 = $7,863 is explained by differences in human capital between the two countries.

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3 years ago
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