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Marina86 [1]
3 years ago
6

There are two aspects of efficiency that the equilibrium of market for loanable funds exhibits. Select the TWO statements that c

haracterize these two aspects of efficiency. a. Savers who lend money are willing to accept a lower minimum interest rate than potential savers who do not lend money. b. Investment projects that are financed by savers have larger rates of return than projects that do not receive financing. c. Investment projects that are financed have smaller rates of return than projects not receiving financing. d. All potential savers lend money. e. Savers who lend money are willing to accept a higher minimum interest rate than potential savers who do not lend money. f. There is always a small surplus of funds in the market.
Business
1 answer:
Mashutka [201]3 years ago
5 0

Answer:

a. Savers who lend money are willing to accept a lower minimum interest rate than potential savers who do not lend money.  

b. Investment projects that are financed by savers have larger rates of return than projects that do not receive financing.  

Explanation:

Loanable funds refer to the aggregate amount of money that all sectors, entities and individuals within an economy have decided to keep as an investment, instead of spending on personal consumption, by saving and giving them out as loans to borrowers.  

The market for loanable funds is in equilibrium when the supply of loanable funds by the saver is equal to demand for loanable funds by the borrowers at a given interest rate.

When the market for loanable funds is in equilibrium, efficiency is maximized because projects that have higher rates of return are given priority to be funded first before the projects with lower rates of return are funded. The reason is that savers that have lowest costs of lending provides funds for the projects that have highest return rates in equilibrium. However, potential saver who do not lend money will prefer a higher interest rates.

Therefore, the correct options related to the two aspects of efficiency that the equilibrium of market for loanable funds exhibits are as follows:

a. Savers who lend money are willing to accept a lower minimum interest rate than potential savers who do not lend money.  

b. Investment projects that are financed by savers have larger rates of return than projects that do not receive financing.  

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Patrick and Amanda are team leaders in a small organization. Patrick does not supervise his team very closely, is always asking
Dominik [7]

Answer:

person-oriented; task- oriented

Explanation:

Patrick focusing on relationships, also mindful of what his team members think, concerned with and respects other people's ideas and feelings shows he is a person-oriented leader.

On the other hand, Amanda focusing on task accomplishment; directing work activities towards goals and ensuring all her team members are up and doing shows she is a task-oriented leader.

7 0
3 years ago
Select the correct statement regarding the contribution margin ratio. Multiple Choice The contribution margin ratio equals contr
Art [367]

Answer:

The contribution margin ratio can be calculated using either total amounts or per unit amounts.

Explanation:

Contribution margin ratio = \frac{Contribution\:per\:unit}{Selling\:price\:per\:unit}

This can even be done by \frac{Total\:Contribution\:}{Total\:Sales}

This will calculate contribution as a percentage of Sales, with this margin ratio we get break even sales value, and not the units.

Whenever there is an increase in variable cost it decreases the contribution.

Therefore, correct statement is

The contribution margin ratio can be calculated using either total amounts or per unit amounts.

8 0
3 years ago
Indicate whether the scenarios would result in an increase, a decrease, or no change in the long-run aggregate supply (LRAS) cur
Anastaziya [24]

Answer:

1. The mandatory retirement age in Wonkaland is abolished.

  • INCREASE IN THE LONG RUN AGGREGATE SUPPLY CURVE: greater use of labor

2. Wonkaland's main export is candy. Candy from this country increases in popularity as consumers all over the world want to buy Wonkalandian candy.

  • NO CHANGE IN THE LONG RUN AGGREGATE SUPPLY CURVE

3. Since candy from Wonkaland has become an international sensation, factories in Wonkaland double the number of candy making machines.

  • INCREASE IN THE LONG RUN AGGREGATE SUPPLY CURVE: greater use of capital investments

4. The top candy companies in Wonkaland chose to relocate their means of production to other countries around the world.

  • DECREASE IN THE LONG RUN AGGREGATE SUPPLY CURVE: lower use of capital investments

Explanation:

The long run aggregate supply curve is only affected by changes in capital, labor and technology. If the use of these factors increases, the LRAS curve will increase, if their use decreases, then the LRAS curve decreases.

4 0
3 years ago
An amendment to the texas constitution requires a balanced budget. This means that _____.
marissa [1.9K]

Any increase in government spending must be offset by an increase in revenue and/or cuts in spending elsewhere in the budget.

<h3>What does Texas Constitution require a balanced budget?</h3>
  • Texas always keeps its budget balanced because the State Constitution demands it. The Texas state and local sales taxes exceed 10% of the individual transaction price. The primary operating fund for Texas is the General Revenue Dedicated Fund.
  • A constitutional amendment known as the "balanced budget amendment" would restrict government spending to the amount of revenue it receives. Spending would need to be under control by the federal government.

An amendment to the texas constitution requires a balanced budget. This means that any increase in government spending must be offset by an increase in revenue and/or cuts in spending elsewhere in the budget.

According to a balanced budget, a government should not spend more than its income. Thus projected incomes and expenditures should be equal.

To learn more about balanced constitutional budget amendment, refer to:

brainly.com/question/8873582

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4 0
2 years ago
Mr. Hudson notes that if he produces 10 pairs of shoes per day, his average fixed cost (AFC) is $14 and his marginal cost is $8;
zalisa [80]

Answer:

Average fixed cost for 20 units = $7

Explanation:

<em>The fixed costs are cost are expenditures that do not vary with the activity level within a given range. Unlike variable costs, fixed costs are tend to be unaffected in the short run by amount of production work done or service rendered.</em>

The units produced will not have an impact on the total fixed costs but rather on the average fixed cost. The average fixed cost would become lower as the units produced increases.

Average fixed cost = Total fixed cost / Total units produced.

Hence , Total fixed cost = Average fixed cost × units produced

DATA

AFC - $14

Units - 10 units

Total fixed cost = 10 × 14 = $140

Average fixed cost for 20 units =Total fixed cost / Number of units

140/20 = $7

Average fixed cost for 20 units = $7

3 0
3 years ago
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