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AlexFokin [52]
3 years ago
5

It becomes easier for businesses to borrow money when

Business
1 answer:
Rina8888 [55]3 years ago
4 0
It becomes easier for businesses to borrow money when the federal reserve increases money supply. Money supply is the quantity of currency and other liquid instruments that are circulating in a nation's economy at a particular time. The central bank of a country can increase the money supply by purchasing government securities on the open market, thereby increasing available funds to private banks. Private banks are thus empowered to lend money to businesses.
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Woodruff Inc. offers you a project that will pay you $17,000/year. If the cost of this project is $100,000, and the discount rat
otez555 [7]

Answer:

The length of time = 12 years

Explanation:

<em>The number of years the case would be determines the length time it takes the present value of  annuity of 17,000 to equate the initial cost </em>

Initial cost = A× (1- (1+r)^(-n)/r =

A- 17,000, r- 13%, n - ?

So we will need to work out the value of " n"

100,000 = 17,000 × 1- 1.13^(-n)/0.133

100,000/17,000 =1- 1.13^(-n)/0.13

5.88235 ×0.13 = 1- 1.13^(-n)

n = 12

The number of years is approximately 12 years

The length of time = 12 years

3 0
3 years ago
A zero-coupon bond pays no annual coupon interest payments. When it matures at the end of 10 years it pays out $1,000. If invest
yanalaym [24]

Answer:

$532.73

Explanation:

we need to determine the present value of the bond:

Present value = future value / (1 + r)ⁿ

where:

  • future value (FV) = $1,000
  • r = 6.5%
  • n = 10 years

PV = $1,000 / (1 + 6.5%)¹⁰ = $1,000 / 1.065¹⁰ = $1,000 / 1.8771 = $532.73

4 0
3 years ago
Read 2 more answers
Brie signs an instrument in which she promises to pay Carmen a certain price for her Dodge Dart. The instrument will be negotiab
kakasveta [241]

Answer:

B) ​money.

Explanation:

Characteristics of a negotiable instrument

  1. Property: the individual or company that possesses the instrument is also considered its owner. Order instruments, e.g. checks, must be endorsed for transfer of property.
  2. Title: the person that receives title of the instrument is called a transferee and is the holder in due course.
  3. Rights: the transferee can take legal action to claim the honoring of the instrument.
  4. Prompt payment: the due holder can anticipate prompt payment because dishonoring the instrument (not paying it) results in the "ruin of credit" of all parties involved in the instrument.
  5. Monetary value: instruments carry a specific monetary value and must be paid in money.

8 0
3 years ago
Steven is an effective and efficient manager. however, he is quite pessimistic and avoids social interactions. steven can be cla
attashe74 [19]
Introvert I believe this is correct?
8 0
3 years ago
Read 2 more answers
Suppose the economy is at a position below its institutional production possibilities frontier. To improve this situation, Keyne
Cloud [144]

Answer:

Keynesian economists might propose that government <em>reduces </em>taxes, which will cause the aggregate demand curve to shift to the <em>right </em>and Real GDP will <em>increases</em>.

Explanation:

Keynesian economics is demand-sided.

If the economy is producing at full capacity, increased demand will only cause inflation as goods and services cannot be increased although people are willing to pay more (real GDP the same)

However, if the economy is below capacity, the problem is that there is not enough demand to drive production (additional goods and services produced will not be bought). Keynesians would advocate reducing taxes to stimulate demand.

When taxes are reduced, goods become cheaper. People are willing to buy more at similar prices (that producers charge), causing the aggregate demand curve to shift to the <em>right. </em>As economy is below capacity, suppliers are able to responded by supplying more goods and services (supplier curve shift to the right) and Real output (GDP) would increase.

7 0
3 years ago
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