1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
solong [7]
3 years ago
8

If Congress ends an investment tax credit that used to subsidize domestic investment, how would this affect the market for loana

ble funds in an open economy context?
Business
1 answer:
marin [14]3 years ago
3 0

Answer: Demand will fall, Interest rates will fall

Explanation:

The investment tax credit would have encouraged more companies to seek loanable funds in order to embark on investment opportunities because they would be taxed less. This increase in demand in the market for loanable funds would have led to rates rising to keep up with demand.

If Congress were to end this credit, the incentive to invest and avoid tax would be gone. Companies would therefore demand less loanable funds and with this drop in demand there will be a drop in interest rates as well to entice people to borrow at the lower rates.

You might be interested in
Mary and Ted are discussing starting a new business and are asking themselves a series of questions like, "What is the worst tha
MissTica

Answer:

Mary and Ted need to determine the type of partnership business they plan to enter into, if it is a <em>General Partnership, Limited Partnership and Limited Liability Partnership.</em>

The type of partnership business will determine their individual liabilities, in the event the business folds up. Furthermore, In a bid for Mary and Ted to answer questions like,"What is the worst that could happen if we fail, they will need a partnership agreement, which states the terms of agreements of each partners.

Explanation:

Mary and Ted need to determine the type of partnership business they plan to enter into, if it is a <em>General Partnership, Limited Partnership and Limited Liability Partnership.</em>

The type of partnership business will determine their individual liabilities, in the event the business folds up. Furthermore, In a bid for Mary and Ted to answer questions like,"What is the worst that could happen if we fail, they will need a partnership agreement, which states the terms of agreements of each partners.

4 0
3 years ago
QUESTION THREE
sveta [45]

From the amount of capital that the graduates had, the firms economic depreciation would be $10000

<h3>How to solve for the economic depreciation of the firm</h3>

Original cost of the capital - market value of capital after a year

= $30000 - $20000

= $10000

<h3>How to solve for the partnership costs</h3>

This is the Cost of capital plus cost of office space and cost of interest =  $44,520

<h3>How to solve for economic profit</h3>

Total revenue - partnership cost

100000 - 44520

= $55,480

Read more on economic depreciation here: brainly.com/question/14552090

#SPJ1

4 0
2 years ago
I WILL MARK THE BRAINLIEST
Nikitich [7]

Answer: B

Explanation: Cockroaches have a strong oily odor from them.

6 0
3 years ago
According to your textbook, the following passage from a speech introduction is an example of a(n) __________ . Today I would li
inysia [295]

Answer:

The answer is: this is an example of a preview statement

Explanation:

Preview statements are used to present the main topics of your speech. As a speaker you should not only introduce your main topics to your audience, you must be able to capture your audience's attention. Usually the preview statement is the second thing you say during a speech, the first should be a general greeting, so it is very critical that your audience understands how you are going to cover your main topics and in what order.

5 0
2 years ago
Your investment has a 20% chance of earning a 30% rate of return, a 50% chance of earning a 10% rate of return, and a 30% chance
stellarik [79]

Answer:

9.2%

Explanation:

expected return of the investment = potential return x chance of each return happening

Expected return of the investment:

  • 20% chance of occurring x 30% potential return = 0.2 x 30% = 6%
  • 50% chance of occurring x 10% potential return = 0.5 x 10% = 5%
  • 30% chance of occurring x -6% potential return = 0.3 x -6% = -1.8%
  • total expected return = 9.2%
6 0
3 years ago
Other questions:
  • zonk corp. is a manufacturer of ball bearings. data below is in dollar amounts in millions: total assets $7460 interest-bearing
    12·1 answer
  • The traditional income statement for Pace Company shows sales $900,000, cost of goods sold $600,000, and operating expenses $200
    11·1 answer
  • Admitting New Partners Who Buy an Interest and Contribute AssetsThe capital accounts of Trent Henry and Tim Chou have balances o
    9·1 answer
  • Samantha, a one-third partner, has an adjusted basis of $90,000 for her partnership interest. If Samantha sells her entire partn
    15·2 answers
  • A monopolistically competitive firm
    8·1 answer
  • What is anomie? What effects does it have?
    15·1 answer
  • Legal forms are most like _____.
    11·1 answer
  • The composition of the Fingroup Fund portfolio is as follows: Stock Shares Price A 310,000 $ 35 B 410,000 40 C 510,000 15 D 710,
    15·1 answer
  • Sam received $10.50 in interest after placing money in his bank. if the account paid 4% in simple interest and he only left it i
    14·1 answer
  • when a company will reduce the number of projects they have to manage internally to only core projects and send noncritical proj
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!