When supplies are endless, prices tend to decrease! This is because there is an infinite amount of a good and everyone can get it. There will likely be left over supplies and the demand is not high so prices will go down.
Answer:
False. Markets can sometimes fail to reach efficiencies when there are externalities, public goods, monopoly, or serious information asymmetries
Explanation:
Invisible hand (effective allocation of resources in a laissez faire economy) sometimes works because when market function effectively and send correct price as signal of values (to society) to producers.
However, when goods can't be traded on markets (public goods) or its values are not correctly reflected on markets (externalities, information asymmetries) or competition is not ensured (monopoly), markets cannot ensure effective allocation of resources.
Answer: financial inflow will reduce the United States interest rate.
Explanation:
The options include:
a. financial inflow will reduce the United States interest rate.
b. financial outflow will increase the Japanese interest rate.
c. The interest rate gap between the United States and Japan will be eliminated.
d. Loanable funds will be exported from the U.S. to Japan
e. the interest rate in the United States will equal theinterest rate in Japan.
Based on the information given in the question, the things that will occur include:
• financial outflow will increase the Japanese interest rate.
• The interest rate gap between the United States and Japan will be eliminated.
• Loanable funds will be exported from the U.S. to Japan
• the interest rate in the United States will equal the interest rate in Japan.
Therefore, option A is the correct option.
Answer:
$7,514
Explanation:
Calculation for how Legion should report bond interest expense for the six months ended June 30, 2021
Using this formula
Bond interest expense=Bonds amount*Priced to yield percentage
Bond interest expense=$150,272*(10%/2)
Bond interest expense=$150,272*5%
Bond interest expense=$7,513.6
Bond interest expense=$7,514 Approximately
Therefore Legion should report bond interest expense for the six months ended June 30, 2021 in the amount of $7,514
True.The financial crisis hastened the ongoing process in which the financial services industry was transforming from having a few large firms to many small firms.
Explanation:
The financial crisis broke the back of many big firms especially working the stock market and exchange. Financing services were being handled by big behemoths during the time that harbored a lot of space in the industry and did not allow smaller firms to take over the tasks and succeed in their stead.
The crisis made it impossible for their business models to sustain and no one could afford a hefty sum for financial services so smaller companies with less operational costs took their place.
