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avanturin [10]
3 years ago
7

The equilibrium interest rate a. equates the aggregate demand for funds with the aggregate supply of loanable funds. b. equates

the elasticity of the aggregate demand and supply for loanable funds. c. decreases as the aggregate supply of loanable funds decreases.
Business
1 answer:
FromTheMoon [43]3 years ago
7 0

Answer:

The correct answer is option a.

Explanation:

The equilibrium interest rate is determined by the interaction of aggregate demand for loanable funds and aggregate supply of loanable funds. In other words, at the level of equilibrium interest rate, the aggregate demand for loanable funds is equal to aggregate supply of loanable funds. Any change in these two variable causes the equilibrium interest rate to change.

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Suppose the production of long-distance airline flights is described by a fixed proportion production process in which three cre
Elina [12.6K]

Answer:

production at this point is technically inefficient.

Explanation:

Efficient production processes requires a producer to either minimise the inputs they are using at a given output or maximise output level at a given input level.

Technical inefficiency is when input is not minimised or output maximised.

In the given instance the fixed cost (airplane) remains unchanged. However crew members can be variable.

If the airplane only requires 3 crew members and 4 crew members are now used, the company is not minimising inputs used so they are technically inefficient.

3 0
3 years ago
ROBERTA transfers property with a tax basis of $400 and a fair market value of $500 to a corporation in exchange for stock with
Neporo4naja [7]

Answer:

correct option is A. $500

Explanation:

given data

tax basis = $400

fair market value = $500

fair market value = $350

liability = $150

solution

we get here  amount realized by Roberta in the exchange that is express as

= fair market value of the stock receive +  from the liability  ...................1

amount realized = $350 + $150

amount realized = $500

so correct option is A. $500

5 0
3 years ago
Analytic communicator
forsale [732]

Answer:

A personal meeting

Voice mail

Explanation:

Though various means of reaching through to individuals differ, however, depending on the gravity or severity of the information to be communicated, you be might be forced to make a somewhat crude means of communication. However, when informations require the passage of specific illustrations and also to show how important the information that is about to be passed on his.organizing a personal meeting might be more satisfactory. However, in many instances, do stance posses a barrier and another means of communication whereby distance doesn't pose a threat may need to be adopted . This include text messages. Emails

voice mails and so on.

8 0
2 years ago
Read the scenario. Alfonso is 19 years old and has a high school diploma. Recently, he was promoted to assistant manager at the
erik [133]

Answer:

He should attend classes at the local college to receive training in management.

Explanation:

Best option.

6 0
3 years ago
The following annual returns for Stock E are projected over the next year for three possible states of the economy. What is the
mr_godi [17]

The question is incomplete. Here is the complete question:

The following annual returns for Stock E are projected over the next year for three possible states of the economy. What is the stock’s expected return and standard deviation of returns? E(R) = 8.5% ; σ = 22.70%; mean = $7.50; standard deviation = $2.50

State              Prob     E(R)

Boom             10%     40%

Normal           60%     20%

Recession       30%   - 25%

Answer:

The expected return of the stock E(R) is 8.5%.

The standard deviation of the returns is 22.7%

Explanation:

<u>Expected return</u>

The expected return of the stock can be calculated by multiplying the stock's expected return E(R) in each state of economy by the probability of that state.

The expected return E(R) = (0.4 * 0.1)  +  (0.2 * 0.6)  +  (-0.25 * 0.3)

The expected return E(R) = 0.04 + 0.12 -0.075 = 0.085 or 8.5%

<u>Standard Deviation of returns</u>

The standard deviation is a measure of total risk. It measures the volatility of the stock's expected return. The standard deviation (SD) of a stock's return can be calculated by using the following formula:

SD = √(rA - E(R))² * (pA) + (rB - E(R))² * (pB) + ... + (rN - E(R))² * (pN)

Where,

  • rA, rB to rN is the return under event A, B to N.
  • pA, pB to pN is the probability of these events to occur
  • E(R) is the expected return of the stock

Here, the events are the state of economy.

So, SD = √(0.4 - 0.085)² * (0.1) + (0.2 - 0.085)² * (0.6) + (-0.25 - 0.085)² * (0.3)

SD = 0.22699 or 22.699% rounded off to 22.70%

7 0
3 years ago
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