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tresset_1 [31]
3 years ago
15

When the interest rate in an economy increases, it is likely the result of either: an increase in the government budget surplus

or a decrease in its budget deficit. an increase in the government budget surplus or its budget deficit. a decrease in the government's budget surplus or an increase in its budget deficit. a decrease in the government budget surplus or its budget deficit?
Business
1 answer:
SIZIF [17.4K]3 years ago
5 0

Answer: c). a decrease in the government's budget surplus or an increase in its budget deficit.

Explanation: Budget surplus refers to the excess of government revenue from taxes and other sources over its expenditure. While, budget deficit refers to the excess of government expenditures over its revenue.

BS= T>G

BD= G>T

A decrease in the government's budget surplus or an increase in its budget deficit leads to an increase in the interest rate in the economy. Thus the correct option is c.

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3. Hari Seldon is planning for his retirement 6 years from now. He plans to deposit $30000 each year for 6 six years (i.e., 6 de
erik [133]

Answer:

a) $231,468.30

b) $209,259.56

c) 9.59%

Explanation:

a) to calculate FV, n=6,I=10, pv=0 and pmt=30000

b) to calculate effect of inflation On FV

N=6, I =6 (nominal interest less inflation), pv=0 and pmt=30000

c) [(231468.30-209259.56)/231468.30]x100

5 0
2 years ago
Using the following year-end information for WorkFit calculate the acid-test ratio:
ASHA 777 [7]

Answer:

0.97

Explanation:

The computation of the acid-test ratio is given below:

= Quick assets ÷ current liabilities

= (cash + short term investment + account receivable + supplies) ÷ (accounts payable + wages payable)

= ($58,110 + $14,000 + $58,000 + $5,600) ÷ ($108,000 + $31,900)

= $135,710 ÷ $139,900

= 0.97

7 0
2 years ago
The Federal Reserve (or Fed) often executes its policy by selling or buying U.S. government securities in the open market, which
dem82 [27]

Answer:

a) When interest rates on U.S. government securities increases, then the Federal Reserve sells those securities in the open market in order to decrease the money supply. This is contractionary monetary policy of the Federal Reserve. As interest rates are indirectly affected by open market operations, the Federal Reserve sells securities on the open market to reduce the amount of money in circulation to combat rising inflation in the economy.

(b) The federal funds rate, the interest rates charged on the loans to individuals and firms and the rates of bank deposits will increase. As a result, the demand for bank deposits will increase and the demand for other debt securities will decrease. This in turn will increase the yield offered on these instruments.

4 0
3 years ago
Ospry Company has working capital in the amount of $ 1,240,000 . For the following transactions, determine whether working capit
chubhunter [2.5K]

Purchasing inventory increases your accounts payable and the inventory balance. Trade payables are part of current liabilities and inventories are part of current assets. Both the balance of current assets and current liabilities will increase and the net effect on working capital will be zero. Therefore, working capital remains the same.

Cash in bank accounts and cash, including unpaid customer checks. Securities such as US Treasury bills and money market funds. A short-term investment that the company plans to sell within one year. Accounts receivable are less a provision for accounts receivable that are unlikely to be paid.

In short, working capital is the money available to meet current short-term obligations. To ensure your working capital is working effectively, you need to calculate your current situation, anticipate your future needs, and consider how to ensure you always have enough cash.

Learn more about working capital at

brainly.com/question/19804046

#SPJ4

6 0
1 year ago
Which of the following has the greatest impact on your cash flow?
Deffense [45]

Answer:

 

Low-priced inventory with high turnover

Explanation:

GOT IT RIGHT IN QUIZ

6 0
3 years ago
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