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Effectus [21]
3 years ago
15

An increase in the real interest rate results in which of the​ following? A. an increase in the demand for loanable funds B. a d

ecrease in the demand for loanable funds C. an increase in the quantity of loanable funds supplied D. Both B and C will occur as a result of an increase in the real interest rate.
Business
2 answers:
irakobra [83]3 years ago
6 0

Answer:

B. a decrease in the demand for loanable funds.

Explanation:

An increase in the real interest rate will result in a decrease for the loanable funds.

Loans act as a fund that is an amount of money borrowed by the companies to be utilized for the running of the business. Interest is the amount payable at a certain rate on the amount borrowed in the form of loans. Loans are generally provided by either the banks or the financial institutions to the public or even companies.

The higher the rate of interest the lesser the demand for loans is there. Interest is charged on loans because it is a facility given.

34kurt3 years ago
4 0

Answer:

<h2>An increase in the real interest rate results in a decrease in the demand for loanable funds.Hence,the answer in this case would be option B. among the answer choices or list presented in the question.</h2>

Explanation:

  • A market for loanable funds represent a monetary or financial market where the main commodity or good that is commercially exchanged or bought and sold is money.
  • The borrowers of loanable funds demand money and the suppliers of loanable funds are the ones who save money and lends them to the borrowers in the market
  • The price or the value of money in the market for loanable funds is denoted by the real market interest rate.Now,the real interest rate has a negative or inverse relationship with the demand for money or loanable funds.
  • As the real interest rate increases in the market,the financial cost of borrowing for the borrowers also increases.In other words,the borrowers of loanable funds or money would now have to pay higher periodic interest on any financial borrowing or loan to the suppliers or lender and vise versa.Therefore,as real interest rises the money or loanable funds demand decreases and vise versa.
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One reason that it is important not to leave your personal information on a public computer is identity theft.

If you are logged into a personal site on a public computer and the information is accessed by someone else you could have your identity stolen. A dishonest person could use the personal information to apply for credit in your name.

6 0
3 years ago
During the year, Belyk Paving Co. had sales of $2,384,000. Cost of goods sold, administrative and selling expenses, and deprecia
Zina [86]

Answer:

(a) Income Statement

                                  Belyk Paving Co.

                    Income statement for the year xxxx

Sales                                                      $2,384,000

Cost of goods sold                               $1,441,000

Gross Profit                                            $943,000

Administrative and selling expenses   $436,600

Depreciation expense                           $491,600

Operating Income                                  14,800

Interest expense                                    $216,600

Income before Tax                                ($201,8000)

Tax rate 35%                                          <u> $0             </u>

Net Loss                                                  <u>($201,800)</u>

(b) operating Cash flow

Net Loss                                                       ($201,800)

Add: Non cash Expenses (Depreciation)   <u> $491,600</u>

Cash flow from operating activities            <u> $289,800 </u>

6 0
3 years ago
What effect does an expansionary monetary policy in the u.s. have on the foreign trade sector?
Lostsunrise [7]

The lower value of the dollar will decrease imports and increase exports. Appreciation of the value of the dollar and the decrease of U.S. net exports.

<h3 /><h3>How does expansionary monetary policy affect trade?</h3>
  • Increases in the stock market are a result of expansionary economic policy since it boosts economic activity. Fiscal and monetary channels can be used by policymakers to carry out an expansionary strategy. It is typically used when inflationary pressures are low and the economy is headed towards a recession.
  • When a central bank employs an expansionary monetary policy, it helps to boost the economy. This boosts the availability of money, brings down interest rates, and raises demand. It promotes economic expansion. It reduces the currency's worth, which decreases the exchange rate.
  • The following are the general effects of monetary policy on economic activity, as measured by changes in (real) interest rates. Financial institutions can obtain funds at cheap interest rates when interest rates fall. They are able to lower their lending rates for loans to businesses and households as a result.
  • Expansive monetary policy can be quite successful in the early stages of a financial and economic collapse, reducing uncertainty spikes and tail risks and preventing negative feedback loops (e.g. Mishkin 2009).

What effect does an expansionary monetary policy in the u.s. have on the foreign trade sector?

The lower value of the dollar will decrease imports and increase exports. Appreciation of the value of the dollar and the decrease of U.S. net exports.

To learn more about lineage, refer to:

brainly.com/question/18939014

#SPJ4

7 0
1 year ago
The marginal cost of a product can be thought of as the cost of producing one additional unit of output. For​ example, if the ma
jek_recluse [69]

Answer:

Check the explanation

Explanation:

C(x) = 0.06x^2 - 6x + 218

Its a quadratic function , minima would occur at vertex.

x is no. of digital cameras

x = -b/2a = -(-6/2*0.06) = 50 cameras

Minimum marginal cost : C(50) = 0.06(50)^2 - 6*50 + 218 = $ 68

4 0
3 years ago
In long-run equilibrium with trade, losses from import competition will force some firms to ______________, increasing demand fo
MrMuchimi

Answer:

The correct answer is option b.

Explanation:

In an open economy, domestic firms have to face competition from the foreign producers. If firms face losses in the long run, because of import competition, these firms will leave the industry.

As the number of domestic firms get reduced, the demand curve of the other firms will become flatter. This happens because of the foreign firms that bring in a large variety of goods in the domestic market.

7 0
3 years ago
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