Answer:
If the return on capital is 12% and the price for loanable funds is 14%, then:____.
a. currently businesses will not borrow loanable funds to invest in capital goods.
Explanation:
This simply means that the costs of borrowing exceed the returns. This makes borrowing and investment unattractive to businesses. The resulting effect on the economy will be disastrous. Many economic variables will be affected negatively, especially output and employment. At such times, the central bank needs to intervene with monetary policies to move the economy out of recession.
Answer:
Answer for the question :
"Nova Corporation hired a new product manager and agreed to provide her a $50,000 relocation loan on a six-month, 5 percent note.a. The company loans the money on January 1.b. The new employee pays Nova the interest owed on the maturity date.c. The new employee pays Nova the full principal owed on the maturity date.Prepare journal entries to record the above transactions for Nova Corporation. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) "
is in the attachment.
Explanation:
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Explanation:
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