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Svetllana [295]
3 years ago
5

Tai credit corp. wants to earn an effective annual return on its consumer loans of 14.1 percent per year. the bank uses daily co

mpounding on its loans. what interest rate is the bank required by law to report to potential borrower
Business
1 answer:
yulyashka [42]3 years ago
3 0
<span>Answer : 13.19 % Explanation: Convert the Effective Annual Return EAR to Annual Percentage rate as shown below: EAR = [1 + (APR / n )]^ n â’ 1 APR = n [(1 + EAR)^ 1/ n â’ 1 where n= number of days in a year. Let us take it as 365, since daily compounding given EAR =14.1% per year so 365 *(1.141)^(1/365) = 13.19%</span>
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3 years ago
Refer to the accompanying graphs for a competitive market in the short run. What will happen to the representative firm's econom
Korvikt [17]

Answer and Explanation:

profit will increase to zero .

Currently the firm is incurring loss as price is less than ATC. In the long run firms will exit.

4 0
3 years ago
Suppose the multiplier is 5 and the government increases its purchases by $15 billion. Also, suppose the AD curve would shift fr
german

Answer:

A) 20 billion

Explanation:

Y = AD

   = C + I + G  

C = A + cY

A - Autonomous Consumption

c - MPC

Y = A + cY + I + G

Y - cY = A + I + G

Y(1 - c) = A + I + G  

Y = (A + I + G)*1/(1 - c)

Taking derivative with respect to goverement purchase  

dY/dG = 1/(1 - c)  

( here d is represting del we are representing partial derivative.)

1/(1 - c) = Multiplier

dY = Multiplier*dG  

     = 5*15  

     = 75

75 = horizontal distance between AD1 & AD2

55 = horizontal distance between AD1 & AD3  

Extent of crowding out = 75 - 55 = 20

Therefore, the Extent of crowding out is 20 billion.

3 0
3 years ago
Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most bal
Paladinen [302]

Answer:

1. The GDP deflator for this year is calculated by dividing the <u>value of all goods and services produced in the economy this year</u> using <u>this year's prices </u>by the <u>value of all goods and services produced in the economy this year </u>using <u>the base year's prices</u> and multiplying by 100.

This is why the formula for the GDP deflator is = GDP by year n prices/ GDP by base year prices.

2. However, the CPI reflects only the prices of all goods and services<u> bought by consumers. </u>

<u />

3. Which does an increase in the price of a Chinese-made car that is popular among U.S. consumers show up in? - <em><u>B) CPI</u></em>

The Chinese-made car is not made in the US and is included in the basket of goods consumers buy which is used to calculate calculate CPI.

4. Which does a decrease in the price of a Treewood Equipment feller buncher, which is a commercial forestry machine that cuts and stacks trees show up in? - <em><u>A) GDP Deflator</u></em>

This is not part of the goods in the basket and it is assumed to be made domestically so it is part of the GDP Deflator.

4 0
3 years ago
Which sales channel incentivizes every member of its network?
bulgar [2K]

Answer:

Channel incentives are a behavioral modification tool that influence channel partners – such as dealers, contractors, resellers, and vendors – to align their behaviors with overarching business goals. These behaviors could include: Increasing overall sales volume. Increasing sales for high margin products

Explanation:

7 0
3 years ago
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