Answer:
The correct answer is C
Explanation:
Economies means the state of the region or the country in relation to the consumption and the production of the services and the goods and also the supply of the money.
If the economies of the India and the China, will be slow down, then the loanable funds as well as the interest rates will increase because the money for liquidity will be negligible which lead to competition among using the money for personal consumption or to delay the consumption through lending the money out.
Answer:
Check the explanation as follows.
Explanation:
a) If it is invested in US
Current= $40 million
Interest rate= 0.28% p.m
Interest for 1 month= $40 million*0.28%= $0.112 million
Interest for 3 months= $0.112*3= $0.336 million
Total value after 3 months= $40 million+$0.336 million = $40336000.
b) If it is invested in Great Britain.
Convert $40 million into Pounds= $40 million*0.639 = Pound 25.56 million
Ivest in Great Britain for 3 months @ 0.32%
Interest per month= 25.56 million*0.32% *3 = 0.245376
Total Pounds after 3 months= Pound 25.805376
Convert into $= 25.805376/0.642 = $40195289.7156
Value if invested in great britain= $40195289.7156
Answer:
Interest rates would rise.
Explanation:
There would be a decrease in the amount of loanable funds borrowed.
if the government were to increase the tax on interest income, a reduction in the amount of funds borrowed would happen because the cost of borrowing would then become higher and people would have to pay more than they would have paid for every amount borrowed
Answer:
She needs $150,000 to fund this perpetuity.
Explanation:
In this question we need to find the present value of this perpetuity. Because this is a growing perpetuity we will need to use the formula of present value of a growing perpetuity.
PV of growing perpetuity = Payment/ R-G
The payment is the current payment the perpetuity will pay which is 6,000, R is the interest rate which is 10% and G is the growth rate of the perpetuity which is 6%. Now we will input these values in the formula in order to find the present value of the perpetuity.
6,000/0.1-0.06
=6,000/0.04
=150,000
Answer:
D. Generates rents that might go to foreigners.
Explanation:
An import quota is the trade restriction imposed by the government on the quantity of the particular commodity to be imported from another country. It protects domestic producers from foreign competition. Overseas goods are generally very cheap compared to locally produced goods, which can destroy a business from the market and can make foreign companies be the leader of the market, who can control the price and quality of the product. Therefore, it very helpful to the local producer in sustaining and generating profit in the market.
