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3 years ago

If a bank is offering a higher interest rate of return to investors, the MOST LIKELY impact on borrowers from the same bank is

2 answers:

7 0

The answer is D. An increased interest rate. The bank will increase the interest rates on loans to get a return on their expences.

forsale [732]3 years ago

6 0

If a bank is offering a higher interest rate of return to investors, the most likely impact on borrowers from the same bank is D. an increased interest rate. An increased interest rate is what gives investors a higher return because they make money off the interest rates. Banks collect the interest as 'repayment' for the loans they are giving out. This serves as a way for them to protect their investment and also make money off of someone else's loan.

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Estimate the cost of expanding a planned new clinic by 25,000 ft2. The appropriate capacity exponent is 0.62, and the budget est

jeka57 [31]

Answer:

cost of expansion = $1389859.55

Explanation:

Given data:

Original size = 185,000 ft^2

New expansion = 25000 ft^2

capacity component = 0.62

total cost for original size of clinic is = $17 million

Size of new clinic = 185,000 + 25,000 = 210,000 ft^2

cost of new clinic $= 17,000,000 \times [\frac{size\ of\ new\ clinic}{185,000}]^{0.62}$

cost of new clinic = $17,000,000 \times [\frac{210,000}{185,000}]^{0.62}$

cost of new clinic = $18,389,859.56

cost of expansion = cost of 210,000 ft^2 - cost of 185,000 ft^2

= 18,389,859.56- 17,000,000

cost of expansion = $1389859.55

4 0

3 years ago

After graduating from college, you are hired by the Ford automobile company as an economic analyst. For your first project, you

Olenka [21]

Answer:

1. if the price of Chevrolet Camaro increases, the demand for Ford Mustangs increases. Conversely, if the price of Chevrolet Camaro falls, the demand for Ford Mustangs falls.

2.If the price of gasoline increases, the demand for Ford Mustangs would fall and if the price of gasoline falls, the demand for Ford Mustangs would increase.

3. if income increases, demand for Ford Mustangs increases and if demand falls, demand for Ford Mustangs falls

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.

Income elasticity of demand measures the responsiveness of quantity demanded to changes in income.

If the absolute value of income elasticity of demand is greater than one, it means demand is elastic.

The income elasticity is given as 3 , it means that demand is elastic. So if income increases, demand for Ford Mustangs increases and if demand falls, demand for Ford Mustangs falls.

Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.

If cross price elasticity of demand is positive, it means that the goods are substitutes goods.

Substitute goods are goods that can be used in place of another good.

If the cross price elasticitiy is negative, it means that the goods are complementary goods.

Complementary goods are goods that are consumed together

Because the cross price elasticity between Chevrolet Camaro and Ford Mustangs is positive, it means they are subsituite goods. So, if the price of Chevrolet Camaro increases, the demand for Ford Mustangs increases. Conversely, if the price of Chevrolet Camaro falls, the demand for Ford Mustangs falls.

Because the cross price elasticity of demand between gasoline and Ford Mustangs are negative, they are complementary goods.

If the price of gasoline increases, the demand for Ford Mustangs would fall and if the price of gasoline falls, the demand for Ford Mustangs would increase.

8 0

3 years ago

亚裔歧视+见死不救=美国亚裔歧视+见死不救=美国

pishuonlain [190]

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7 0

3 years ago

Economists agree that a. neither high inflation nor moderate inflation is very costly. b. both high and moderate inflation are q

bezimeni [28]

Answer:

High inflation is costly, but they disagree about the costs of moderate inflation.

Explanation:

Inflation can be defined as the persistence rise in the price of goods and services. Inflation leads to a decline in the value of money this means that individuals may no longer to buy enough thing with the same amount of money which is previously enough to buy the things needed. The rise in the price of goods will equally mean inability to purchase the normal quantity of goods.

The main causes of inflation are demand pull and cost push. Demand pull occurs when manufacturers increase their prices due to the increase in demand for their products. Cost push occurs when manufacturers increase the prices of their products because the costs have also increased.

4 0

3 years ago

Christine has purchased five bananas and is considering the purchase of a sixth. It is likely she will purchase the sixth banana

Anuta_ua [19.1K]

Answer:

b. the marginal benefit of the sixth banana exceeds its price.

Explanation:

Consumer consumes a commodity only until: that commodity consumption yields him/ her more or at least equal satisfaction than the - dissatisfaction from loosing money (price) spent at that commodity.

Marginal Benefit is in terms of Marginal Utility i.e Additional Satisfaction that consumer gains from consuming an additional unit of a commodity.

So, Christine will purchase 6th Banana only if additional satisfaction from that additional banana's consumption > dissatisfaction owing to price cost paid for it.

If Marginal Value < Price, its satisfactory loss making for her & she will rather reduce banana consumption. Average & Total Values are not apt tools to analyse the case.

7 0

3 years ago