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
The firm's target capital structure should do which of the following?
inysia [295]

Answer:

e. Minimize the weighted average cost of capital (WACC)

Explanation:

A: Earnings per share is linked to the stockholders' only, therefore, it cannot achieve the target capital structure. It is a wrong statement.

B: Minimizing the cost of equity is related to the equity only, so, it is also a false statement.

C: Cost of debt is only related to liabilities. It cannot minimize the total target capital structure. Therefore, it cannot be an answer.

D: It is out of question because target capital structure cannot obtain the bond rating.

E: Since weighted average cost of capital is the combination of debt and equity capital's cost, it can be minimized with the firm's target capital structure.

8 0
3 years ago
Assume that a state government currently provides no child-care subsidies to working single parents, but it now wants to adopt a
sergiy2304 [10]

Answer:

The line on the graph will be parallel to the pre-subsidy line and the new constraint will then be equal to the points connecting the two lines.

Explanation:

The subsidy by government to single parents is $3 per hour for up to 8 hours. The total of subsidy will be $16 for each day. The labor force who were not receiving the subsidy before had steep indifference curve but now few workers will find utility maximization with flatter indifference curve so the workers will join the subsidy program.

6 0
3 years ago
TechSmart employees receive annual pay raises and stock allocations on the basis of performance evaluations that assess individu
Goryan [66]

TechSmart managers are implementing distributive justice.

<h3>What is distributive justice?</h3>

Employees experience distributive justice when they think that results are fair. These results can be measurable, like pay, or intangible, like appreciative remarks. In the event that staff members feel fairly compensated or handled, distributive justice is achieved. When equal effort does not result in equal rewards or when a person or group obtains an excessive amount of goods, distributive justice is lacking.

When equals enjoy the same distribution of benefits, distributive justice has unquestionably been attained. In a constitutional democracy, governmental policies that guarantee social security or healthcare to all retirees and the old are examples of distributive justice.

Learn more about distributive justice here:

brainly.com/question/17510777

#SPJ4

7 0
2 years ago
A vacant lot acquired for $115,000 is sold for $298,000 in cash. What is the effect of the sale on the total amount of the
Artemon [7]

Answer:

+$183,000

$0

+$183,000

Explanation:

Total assets increased by ($298,000 - $115,000) $183,000.

Total liabilities has no change

Total shareholder equity increased by ($298,000 - $115,000) $183,000.

4 0
3 years ago
a pea plant that has round seeds has the genotype Rr. it is crossed with a pea plant that has wrinkled seeds and the genotype rr
baherus [9]
50%
It will create the offspring Rr, Rr, rr, and rr
6 0
3 years ago
Other questions:
  • Discuss the reasons why suppliers are sometimes reluctant to share cost information with buyers - particularly during the early
    6·1 answer
  • What is true for monopoly that is not true for perfect competition? profit is maximized where mr = mc. the industry demand curve
    15·1 answer
  • Which of these contributes to a budget deficit?
    8·1 answer
  • In 2006, consumers held on to a 2007 Chevrolet Monte Carlo at the State Fair of Texas in an endurance competition that tested co
    12·1 answer
  • An auto parts shop carries an oil filter for trucks. The annual demand for the oil filter is roughly 1200 units. The ordering co
    13·1 answer
  • A deadweight loss is a consequence of a tax on a good because the tax
    12·1 answer
  • Why occupation is important <br><br>And give me example ​
    9·1 answer
  • An employee that never directly communicates to her manager that she is pregnant in hopes that her manager will just assume, but
    9·1 answer
  • Accountants rely heavily on using Excel to perform a wide range of activities to record transactions and report their results. I
    5·1 answer
  • What is a parent company of philip morris?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!