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Evgesh-ka [11]
3 years ago
5

If in the past Congress had taken additional actions to make saving more rewarding, then today it is likely that the equilibrium

interest rate a. and the equilibrium quantity of loanable funds both would be lower. b. would be higher and the equilibrium quantity of loanable funds would be lower. c. would be lower and the equilibrium quantity of loanable funds would be higher. d. and the equilibrium quantity of loanable funds both would be higher.
Business
1 answer:
posledela3 years ago
5 0

Answer:

C

Explanation:

In this question, we are looking at what would be the later effect of the Congress taking steps to make sure that there is an increase in the amount of returns on savings for example, say the amount of interest rate on saved money is increased.

What will happen in this case is that the equilibrium interest rate would be lower while the equilibrium quantity of loanable funds will be higher. What he meant by the equilibrium interest rate is that it is the interest rate at which the amount of money demanded is equal to the amount of money supplied.

Due to the legislation by congress, it is expected that more money would be supplied in terms of bank deposits as people would want to make a higher profit off the legislation. The effect of this is that the equilibrium interest rate will be lower as its balance would have been upset my the availability of more deposits and less demand.

We also say that the equilibrium level of loanable funds will be higher. This is because there would be more money present in the vaults of the bank as savings have been encouraged and people are expected to fill the bank with more money. This thus means the bank has more money to throw around via loans as there is an increase in the amount of savings. This surely would drive up the equilibrium quantity of loanable funds

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katrin2010 [14]

Answer:

B. Part of strategic group map analysis always entails drawing conclusions about where on the map is the best place to be and why.

Explanation:

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5 0
3 years ago
Victor is the recipient of $1 million from a lawsuit. Victor decides to use the money to purchase a small business in Florida. H
ryzh [129]

Answer:

Economic profit = -$25,000    option c

Opportunity cost = $175,000  option d

Accounting profit to allow for zero economic profit = $175,000 Option c

Explanation:

<em>Economic profit is the difference between revenue and implicit cost. Implicit cost is the sum of out-of-pocket accounting cost and opportunity cost.</em>

<em>opportunity csot is the value of the benefit sacrificed in favour of a decision.</em>

Economic profit = Accounting profit - opportunity cost

Opportunity cost for victor includes

1. The $100,000 per year which he would have earned had he invested the  money in a bond

2. The annual salary of $75000 he forfeited

Total opportunity cost = 100,000 + 75,000= $175,000

Economic profit = 150,000 -175,000 = -$25,000

To attain an economic profit of zero , the accounting profit ought to be the same at the opprotunity cost of $175,000

Economic profit = -$25,000    option c

Opportunity cost = $175,000  option d

Accounting profit to allow for zero economic profit = $175,000 Option c

7 0
3 years ago
The balance in Accounts Receivable at the beginning of the year was $ 550 comma 000. The balance in Accounts Receivable at the e
mina [271]

Answer:

$3,400,000

Explanation:

The computation of the credit sales is shown below:

As we know that

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So, the credit sales is

= $4,150,000 - $750,000

= $3,400,000

Simply we applied the above formula

5 0
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Kruka [31]
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Vanyuwa [196]

Answer:

I'd say B,

Explanation:

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3 0
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