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lilavasa [31]
4 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]4 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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Will the earnings sensitivity change in the long run? What kind of assets or liabilities could explain the positive repricing ga
OLEGan [10]

Answer:

Yes, earning sensitivity will change in the long run

Explanation:

Earnings Sensitivity Analysis helps in determining the impact of an independent variable over a particular dependent variable based on various assumptions. This comparison on its own, measures changes in the long run.

This technique helps managers in determining the change in net interest income in correspondence to wide range of interest rates.

The repricing gap in the long term window will measure of the difference between the dollar value of assets that will reprice and the dollar value of liabilities that will reprice within a specific time period.

A possible implication is potential to receive a new interest rate.

The assets that could explain the positive reprising gap is Accounts payable and investments.

Two examples of Liabilities are: Short term loans and accounts payable.

8 0
4 years ago
Read 2 more answers
Devon is in the market for a new car. After having done her research, she has determined that the Jeep Grand Cherokee is the bes
nekit [7.7K]

Answer:

 D) Lifestyle

Explanation:

Lifestyle can mean way of life or habit. Devon enjoys outdoor recreational activities, this can be described as her way of life, thus, her lifestyle.

If she was influenced by her occupation, she would have considered what she does before buying her car.

If she was influenced by her age, she would have considered her age when buying the car.

If she was influenced by her economic situation, she would have considered money and if the car is too expensive or cheap when buying the car.

I hope my answer helps you

4 0
3 years ago
Economies of scale are ways that a company can lower the cost per unit by selling more units overall
Troyanec [42]
It’s True that economies of scale are ways that a company can lower the cost per unit by selling more units overall
7 0
3 years ago
Which of the following would be considered a physical contaminant?
Cloud [144]

Answer:

Packaging staple is the correct example of physical contamination.

Explanation:

Physical contamination generally occurs in food when any foreign objects mostly hard and sharp objects that may result in injuries like choking, dental damage, and sometimes even death. Here, the packaging staple is a physical contaminant.

Other types of contamination are biological contamination and chemical contamination that occurs due to biological and chemical activities. The virus in a hamburger is an example of biological contamination, whereas, sanitizer residue and ice on frozen fish are examples of chemical contamination.

3 0
3 years ago
At the beginning of 2015, bryers incorporated reports inventory of $6,500. during 2015, the company purchases additional invento
Kruka [31]
Cost of goods sold=
beginning inventory+purchase-ending inventory

cost of goods sold
=6,500+21,500−8,500
=19,500
5 0
4 years ago
Read 2 more answers
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