The equilibrium interest rate is 5 percent, the equilibrium quantity of loanable funds is increased to $250 billion and the government has a budget $100 billion.
Explanation:
The government enters the market when it has a surplus. The tendency of government budget is to rise the real interest rate and decrease investment. The private supply of the loanable funds will increase to match the quantity of loanable funds based on the government demand.
when the Government surplus is for $100 billion a year, the equilibrium interest rate falls to 5 percent and the equilibrium quantity of loanable funds increases to $250 billion a year.
Thus, The SLF curve is the supply of loanable funds curve and the PSLF curve is the private supply of loanable funds curve. The equilibrium interest rate is increased to 5 percent, the equilibrium quantity of loanable funds is $ 250 billion and the government has a budget of $100 bilion.
$2,000 billion.
In order to find the reserve amount, you need to know the amount of total deposits and the required reserve ratio and whether the bank holds any excess reserve. Here, we have $400 billion of total deposits and a required reserve ratio of 0.2. You would divide the total deposits by the required reserve ratio to find the reserve amount.
$400 billion / 0.2 = $2,000 billion
Answer:
There are number of trade barriers that increases the cost of imported goods which an economy thinks is necessary for the protection of its local firms or developing firms. These restriction includes administration workload, import duties, quotas, embargoes, ban on import on certain products, subsidies provided to local firms to compete foreign companies, etc. These all restrictions from the government has decreased the chances of entry of foreign firms.
This also effects the local firms who have started exporting their products and this sufferings are all because they have no control on cost if they buy machineries that costs them higher. This makes their product less competitive in the international markets.
Answer and Explanation:
The computation is shown below;
1. Reorder point is
= Daily demand × lead ime
= 20 × 3 days
= 60 pounds
2. The length of the order cycle is
= Order quantity ÷ demand rate
= 80 ÷ 20 pounds
= 4 days
3. The average inventory level is
= Order quantity ÷ 2
= 80 ÷ 2
= 40 pounds
4. The total daily cost is
the cost of the pepperoni = daily demand × cost per pound
= 20 × 3 pound
= 60
Daily ordering cost is
= daily demand ÷ ordering quantity × ordering cost
= 20 ÷ 80 × $10
= $2.50
And, the daily holding cost is
= ordering cost ÷ 2 × holding cost
= 80 ÷ 2 × 0.04
= $1.60
Now the total daily cost is
= $60 + $2.50 + $1.60
= $64.10
5. The economic order quantity is
= (√2 × annual demand × ordering cost ÷ carrying cost)
= √2 × 20 × 10 ÷ 0.04
= √10,000
= 100
C. supplier relationship management is the answer
