Answer:
D) Shift of the demand curve for Z to the left
Since both the equilibrium quantity and price decreased.
Explanation:
A rightward shift of the demand curve should increase both the equilibrium price and quantity.
A rightward shift of the supply curve should increase the equilibrium quantity and decrease the equilibrium price.
A leftward shift of the supply curve should increase the equilibrium price and decrease the equilibrium quantity.
Answer:
Present value of interest is $5,062 and future value is $5,796
Explanation:
The formula for finding the Present value of the interest reported as revenue is calculated as under:
Present Value of $40,000 receivable in 2 years = $40,000 / (1+7%)^2
Present Value of $40,000 receivable in 2 years = $34,938
The difference of the future value receivable and present value of the future amount receivable is the interest's present value which is given as under:
Interest Present value = $40,000 - $34,938 = $5,062
Using the compounding formula, the future value of the interest that will be recorded in the financial statement will be = $5,062 * (1 + 7%)^2 years
Future value of interest = $5796
Answer:
e. $225,000.
Explanation:
Since Bob Shockey pays interest as in accrues, the amount the beneficiary will receive if he dies before the debt is repaid will be the cash value of his life insurance policy minus amount borrowed to send his daughter to private college. This can be calculated as follows:
Amount to receive by beneficiary = $250,000 - $25,000 = $225,000
Therefore, his beneficiary will receive $225,000.
According to liquidity preference theory, a drop-off in money demand for some ground other than a change in the price degree causes The interest rate to go down, so the aggregate demand shifts.
<h3>What is aggregate demand?</h3>
The total amount of goods and services produced in an economy is the measurement of the aggregate demand.
The aggregate demand is shown as the total amount of money is exchanged at the particular price level and point in time.
Thus, The interest rate to go down,
For more details about aggregate demand, click here:
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