Answer:
The answer is Option C
Explanation:
Any event that would either decrease the demand for loanable funds or increase the supply of loanable funds will decrease the equilibrium interest rates. Supply of loanable funds is affect by the amount of national savings. National savings in turn, is the sum of private savings, public saving and net capital inflow.
In option C, capital inflows are increasing. This means that there would be an excess supply of money in the economy which can be converted into loanable funds. This would, therefore, push the supply curve to the right thereby reducing the real interest rate equilibrium.
Answer:
B. They make choices based on their self-interests.
Explanation:
A market economy can be defined as the economy of a country where by the government has a minimal influence or intervention on how the market operates.
A market economy is regulated by the individuals that owns the businesses in that economy. These individuals have the ability to direct resources that they need from production to their firms and businesses.
A market economy is largely or greatly influenced and regulated by the rate of supply and demand. Consumers in a market economy have to sometimes paid a high price for the goods and services that they require. Consumers make financial decisions in a market economy by making their choices based on self interests.
A market economy is a very competitive economy because
a. the demand of goods and services by consumers have increased therefore this results in an increase in production of goods and services.
b. The producers tend to high innovative when producing this goods and services required by the consumers.
In a market economy, businesses and firms tend to have an increased of a very high rate of efficiency when producing goods and services such that they minimise or lower the cost of production while ensuring that they make high or huge amounts of profits.
Answer:
5%
Explanation:
nominal interest rate = 5%
real interest rate = nominal interest rate - increase in GDP deflator (inflation rate) = 5% - 2% = 3%
The nominal interest rate is the interest rate earned or charged without considering the effects of inflation. The real interest rate adjusts the nominal interest rate against the year's inflation rate.
Answer:
D. gradually over time
Explanation:
According to 1968 research by Ball and Brown, securities markets fully adjust to earnings announcements gradually over time
Answer:
If she earned $10,000 over the past 10 years, then the profit-sharing award represents 2.5% of her annual salary
But if she earned $10,000 only in one year, then the profit-sharing award represents the 25% of her annual salary
Explanation:
If she earned $10,000 over the past 10 years, and we suppose that all payments are equal, then each year she received $1000.
What percentage of her annual salary ($40,000) $1000 represents?
$1000/$40,000=0,025*100= 2.5%
But if she earned $10,000 in one year, then:
$10,000/$40,000= 0,25*100=25%
