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1 year ago

When the demand for the economy is expanding, the demand for loanable funds will ________.

Business

1 answer:

nikklg [1K]1 year ago

7 0

When the demand for the economy exist expanding, the demand for loanable funds will increase.

<h3>What is Demand?</h3>

The quantity of a good that consumers are willing and able to buy at various prices at a specific time period and location is known as the demand. The demand curve is another name for the relationship between price and quantity demand. Demand is just a consumer's desire to buy products and services immediately and to pay the price associated with them. Demand can be defined as the quantity of things that consumers are prepared and willing to purchase at various prices within a specific time frame.

Loanable funds are all the resources that individuals and organizations in a given economy have chosen to set aside and lend to investors rather than use for their own needs. Savings are the source of the loanable funds available. It is predicated on borrowing that loanable funds are in demand. The real interest rate and the amount of loans made depend on how the supply of savings and the demand for loans interact.

Hence, When the demand for the economy exist expanding, the demand for loanable funds will increase.

To learn more about Demand refer to:

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Why should you always consider the opportunity cost when making a significant purchase?

vladimir2022 [97]

You should always ponder the opportunity cost when making a important purchase to make sure you choose making a payment that would be most beneficial for you. Opportunity Cost refers to the financial opportunity that is given up because you choose to do something else with your money

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2 years ago

*E21.23 (LO 5) (Sale-Leaseback) Assume that on January 1, 2020, Elmer's Restaurants sells a computer system to Liquidity Finance

Dennis_Churaev [7]

<u>Solution and Explanation:</u>

Date General Journal Debit Credit

January 1, 2017 Cash/Liquidity Finance Co. 680000

Computer system 600000

Profit on sale of computer system 80000

To record the sale of computer systems

January 1, 2017 Lease Rental 115970

Cash 115970

To record the first lease rental of the lease Journal entries in the books of lesser(Liquidity Finance Co.)

Amount in $

Date General Journal Debit Credit

January 1, 2017 Computer system 680000

Cash/Elmer's Restaurants 680000

To record the purchase of computer systems

January 1, 2017 Cash 115970

Lease Rental Income 115970

To record the first receipt towards lease rental of the lease

December 31, 2017 Depreication on computer system 68000

Accumulated depreication on computer system 68000

To record the depreication expense for the year

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2 years ago

Which transitional word or phrase would most efficiently increase the cohesiveness of the following sentences?

Yanka [14]

Answer:

however

Explanation:

The best of the transitional word or phrase would most efficiently increase the cohesiveness of the following sentences is ''however''

"The company recorded a 11 percent increase in domestic profits, however the company has not been able to establish much demand in foreign countries."

It shows that although the company is doing well domestically by growing its profits, it has not been able to do so internationally.

4 0

2 years ago

In many developing countries, the amount paid in ___________________ was as much as the combined amount for water, health, agric

Marianna [84]

In many developing countries, the share paid in a deficit budget was as much as the united amount for water, health, agriculture, roads, transport and finance.

<h3>What is the surplus and deficit budget?</h3>

A budget surplus is when extra money is gone over in a budget after expenses are paid. A budget deficit ensues when the federal government spends more money than it contains in revenue. Internal loans that drive up for the bulk of public debt are further divided into two broad types – marketable and non-marketable debt.

Anyone having borrowed funds or interests from another owes a debt and is beneath obligation to return the goods or repay the funds, usually with interest. For governments, the demand to borrow to finance a deficit budget has led to the growth of various states of national debt.

To learn more about the deficit budget visit the link

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6 0

8 months ago

Doris recently started her position at Monro Company. The company uses the dollar-value LIFO inventory method. On her first day

Furkat [3]

Answer

Explanation:

Cost index in dollar - value LIFO method is used to determine the change in prices since the beginning of he base year by comparing the year end inventory to the base layer cost.

The extended cost of the ending inventory at the most recent price is divided by the cost of the ending inventory at the base year price.

Workings

Cost in term of base layer = $50,000

Cost in term of the layer layer $100,000

Cost index = 100000/50000 = 2

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3 years ago