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snow_tiger [21]
3 years ago
9

Which combination of events could have caused the equilibrium interest rate to fall and the equilibrium quantity of loanable fun

ds (both borrowed and lent) to rise
a. A baby boom begins, investor confidence rises.

b. People have lower time preferences, and the governments run larger deficits.

c. A baby boom begins, and investor confidence falls.

d. A baby boom begins, and people have higher time preferences.

e.People have lower time preferences, and capital is more productive.
Business
1 answer:
enot [183]3 years ago
4 0

Answer:

The correct option is A: A baby boom begins, investor confidence rises.

Explanation:

The main combination of factors that would cause equilibrium interest rate to fall and equilibrium quantity of loanable funds to rise is when there are many more individuals in their middle age than there are older people, and an increase in  wealth. The presence of many middle aged individual would likely indicate the beginning of a baby boom and wealth increase in an economy shows confidence in investors.

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Suppose a country has a money demand function ( M/P )^d = kY , where k is a constant parameter. The money supply grows by 12 per
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Answer:

Part A)

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Inflation rate = 8%

Part B)

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Part C)

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Q 10.25: Admire County Bank agrees to lend Givens Brick Company $600,000 on January 1st. Givens Brick Company signs a $600,000,
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Answer:

Entry is given below

Explanation:

As Givens brick company is paying off the liability of note payable and the interest amount therefore, it will be debited as it is a decrease in liability. Cash will be credited as it is our asset and its decreasing.

Entry                      DEBIT          CREDIT

Notes payable     $600,000

Interest                 $36,000(w)

Cash                                           $636,000

Working

Interest = $600,000 x 8% x9/12

Interest = $36,000

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Answer:

B) fit for the ordinary purpose for which such goods are used.

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