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Yakvenalex [24]
3 years ago
9

If there is a surplus of loanable funds, then Group of answer choices the quantity of loanable funds demanded is greater than th

e quantity of loanable funds supplied and the interest rate is below equilibrium. the quantity of loanable funds supplied is greater than the quantity of loanable funds demanded and the interest rate is above equilibrium. the quantity of loanable funds demanded is greater than the quantity of loanable funds supplied and the interest rate is above equilibrium. the quantity of loanable funds supplied is greater than the quantity of loanable funds demanded and the interest rate is below equilibrium.
Business
2 answers:
miss Akunina [59]3 years ago
7 0

Answer:

The correct option is that the quantity of loanable funds  supplied is greater than the quantity of loanable funds demanded and the interest rate is below equilibrium

Explanation:

There would be surplus of loanable funds if the quantity supplied is more than that demanded, hence the knock on effect of that is that interest would be below equilibrium.

Judging from the law of demand and supply, when quantity supplied increases the price moves downward.

A typical example in the world today is that oil producing nations  are supplying more of crude oil in the world oil market whereas the demand is slowing down as businesses are locked down due COVID-19 menace and the price fell from about $65 per barrel to less than $30

sp2606 [1]3 years ago
3 0

Answer:

The quantity of loanable funds supplied is greater than the quantity of loanable funds demanded and the interest rate is below equilibrium

Explanation:

For there to be a surplus of loanable funds available the quantity of loanable funds supplied is greater than the quantity of loanable funds demanded and also a decrease in the interest rate.

this is strictly obeying the law of demand and supply which states that the increase in supply without a corresponding increase in demand will cause  a decrease in equilibrium price of a commodity. for the availability of surplus loanable funds the supply for the loans must be greater than the demand for the loans

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Gonzalez Company has been in business for several years. At the end of the current year, the ledger shows:
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Answer:

Debit : Bad Debts = $16,370

Credit : Allowance for doubtful debts = $16,370

Explanation:

The question states that bad debts are expected to be 5% of the accounts receivables. This means that it is: $327,400 x 5% = $16,370.

An account for allowance for doubtful debts is a contra account created, predicting that certain debtors will not be able to pay for the goods and services they purchased. The 5% may be based on historical experiences. Doubtful debts aren’t officially uncollectible, it is simply a prediction, but bad debts are, where you have officially written off a certain accounts receivable as uncollectible.

An allowance for doubtful debts is recorded in the balance sheet, directly under accounts receivables. Bad debts are recorded as an expense in the income statement.

The initial entry for allowance for doubtful debts is incorrect, hence it would have to be corrected before the new amount can be recorded. Correction:

Debit : Allowance for doubtful debts = $7900

Credit : Bad debts = $7900

The accounts will be cancelled off and the new entry can be recorded...

Debit : Bad Debts = $16,370

Credit : Allowance for doubtful debts = $16,370

When the amount is officially declared uncollectible, the allowance for doubtful debts account will be debited and the accounts receivables account will be credited.

6 0
3 years ago
Use the following to answer questions 3-8: ​ Number of Workers Total Cost 0 1000 1 2200 2 3200 3 4000 4 4600 5 5000 6 5200 7 560
Firlakuza [10]

Answer:

Firm should hire the 4th worker as MR > MC.

Explanation:

Here, we are comparing the marginal cost of hiring 4th worker with the revenue generated by the 4th worker.

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Therefore, the firm should hire the 4th worker as the marginal revenue of 4th worker is greater than its marginal cost.

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3 years ago
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3 years ago
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Answer:

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