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lilavasa [31]
3 years ago
10

If the interest rate rises, the A. quantity of loanable funds demanded by firms decreases B. quantity of loanable funds demanded

by government decreases C. quantity of loanable funds demanded by firms increases D. quantity of loanable funds demanded by government increases E. demand for loanable funds curve shifts to the right
Business
1 answer:
torisob [31]3 years ago
8 0

Answer:

A. quantity of loanable funds demanded by firms decreases

Explanation:

Market for loanable funds represents a place of interaction between borrowers and lenders.

Quantity of loanable funds demanded represents need for the borrowers to avail funds.

Supply of loanable funds depends upon savings represented by the money banked by individuals. If consumption would be more, savings would be less and thus, supply of loananble funds will be less. This would raise the interest rate on loanable funds which would lead to a decrease in the quantity demanded of loanable funds by the firms.

Similarly, when the supply of loanable funds increases, this reduces the interest rate ,loans get cheaper and it becomes more convenient to avail loans and thus, quantity demanded of loanable funds by firms increase.

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What is a common association detection analysis technique where you analyze certain items to detect customers' buying behavior a
adelina 88 [10]

Answer:

Regression analysis

Explanation:

Regression Analysis involves looking at past behavior to predict future behavior. By looking for predictors within past data, it can be determined  how well those factors can predict a future outcome.

5 0
2 years ago
What are three strategies that you can use to make better financial decisions?
Gnom [1K]

Investments, Savings, and Expenses are the three basic strategies, which can help a person take better and efficient financial decisions on a personal level.

<h3>What are better financial decisions?</h3>

  • The strategies to choose the investments in different assets and debt classes will enable a person to increase his chances of gaining better financial returns.

  • The amount of money, a person decides to save for any future requirements will help him out of the financial crises that may take place in his life.

  • The strategy on where to spend and where not to spend will help a person have more disposable income to fulfill the financial needs in the future.

Hence, the strategies for taking better financial decisions are as aforementioned.

Learn more about financial decision here:

brainly.com/question/19502030

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7 0
1 year ago
Banks pay interest to customers through a
nexus9112 [7]

Answer:

mortgage account

For me:

I like that among us account perfect

3 0
2 years ago
Read 2 more answers
Lester's just signed a contract that will provide the firm with annual cash inflows of $28,000, $35,000, and $42,000 over the ne
Free_Kalibri [48]

Answer:

$64,474.20

Explanation:

As for the information provided,

discount rate = 7.25%

First payment will be made at the end of year 1

Discounting factor = \frac{1}{(1+0.0725)^1} = 0.9324

Thus, current value of payment = 28,000 \times 0.9324 = $26,107.20

Discounting factor for receipts =

Year 1 = \frac{1}{(1+0.0725)^1} = 0.9324 = $28,000 \times 0.9324 = 26,107.20

Year 2 = \frac{1}{(1+0.0725)^2} = 0.8694 = 35,000 \times 0.8694 = 30,429

Year 3 = \frac{1}{(1+ 0.0725)^3} = 0.8106 = 42,000 \times 0.8106 = 34,045.20

Therefore, value of contract today = - $26,107.20 + $26,107.20 + $30,429.0 + $34,045.20 = $64,474.20

5 0
3 years ago
Suppose the price level and value of the U.S. Dollar in year 1 are 1 and $1, respectively. Instructions: Round your answers to 2
Nookie1986 [14]

Answer:

0.74

Explanation:

Data provided  in the question

Price level = 1.35

According to the given situation, the computation of the new value of the dollar is shown below:-

The New value of the dollar = 1 ÷ Price level

= 1 ÷ 1.35

= 0.74074

or

= 0.74

Therefore for computing the new value of the dollar we simply applied the above formula.

3 0
3 years ago
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