C. Reduce consumer reliance on trade
Answer:
B and C only.
Explanation:
The options of this question wasn't provided. Here are the options:
A.
higher real interest rate induces more investment.
B.
higher real interest rate discourages current consumption.
C.
higher real interest rate encourages more saving.
D.
all of the above.
E.
B and C only.
It is assumed that households either spend disposable income on consumption or savings. If interest rate is high, it would encourage households to save instead of spending on consumption. The same argument extends to firms.
This explains why the credit supply curve is upward sloping or positively sloped, the higher the interest rate, the higher the savings rate and the higher the credit supply. Conversely, the lower the interest rate, the lower the savings rate and the lower the credit supply.
I hope my answer helps you
Answer:
Amount raised = $236,027.47
Explanation:
<em>The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).
</em>
Value of Bond = PV of interest + PV of RV
The value of bond for Whipple Corp can be worked out as follows:
Step 1
PV of interest payments
Semi annul interest payment
= 5.6% × 2000 × 1/2
= 56
Semi-annual yield = 6.34%/2 = 3.17
% per six months
Total period to maturity (in months)
= (2 × 25) = 50 periods
PV of interest =
56 × (1- (1+0.0317)^(-50)/0.0317)= 1395.49
Step 2
PV of Redemption Value
= 2000 × (1.0317)^(-50)
= 420.105
Price of bond
= 1395.49
+ 420.10
= $1815.60
The amount raised = price per bonds× Number of unit
= $1815.595× 260,000/2000= $236,027.47
Amount raised = $236,027.47
Answer:
D. Increase; increase
Explanation:
Exchange rate is defined as the amount of one currency that can be exchanged for another currency at a particular time.
Demand and supply affects exchange rates of currencies.
Currencies that are in more demand tend to have higher exchange rates, while those with low demand will have low exchange rate.
In this instance an increase in preference for US goods will cause an increased demand for dollars. The dollar becomes stronger against the Peso.
It will take more pesos to purchase the dollar, so equillibrum exchange rate of peso to dollar will increase.
Answer:
Budgeted direct labor cost= $10,150
Explanation:
Giving the following information:
Production:
March= 1,400 units
April= 1,500 units
Each nightstand requires 0.25 direct labor hours in its production. Direct labor rate of $ 14.00 per direct labor hour.
To calculate the production budget cost for direct labor, we need to use the following formula:
Direct labor cost= total direct labor hours*direct labor rate
<u>March:</u>
Direct labor hours= 0.25*1,400= 350 hours
<u>April:</u>
Direct labor hours= 0.25*1,500= 375 hours
Budgeted direct labor cost= (350 + 375)*14= $10,150
