1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Salsk061 [2.6K]
3 years ago
10

If there is a surplus in the market for loanable funds, the resulting change in the real interest rate a. raises the quantity of

loanable funds supplied and reduces the quantity of loanable funds demanded. b. reduces the quantity of loanable funds supplied and raises the quantity of loanable funds demanded c. raises both the quantity of loanable funds supplied and the quantity of loanable funds demanded. d. reduces both the quantity of loanable funds supplied and the quantity of loanable funds demanded.
Business
1 answer:
Arlecino [84]3 years ago
7 0

Answer:

The correct answer is option b.

Explanation:

A surplus in the market for loanable funds is likely to cause a fall in the interest rate. At lower interest rate, people who need credit will demand more loanable funds. While the suppliers will provide less funds. So, the demand of loanable funds will increase and the supply will decrease.

This process will continue till excess demand will cause the interest rate to rise. The initial equilibrium will be restored eventually.

You might be interested in
As of December 31, 2015, Juneau Company had total cash of $155,000, notes payable of $85,600, and common stock of $52,400. Durin
Illusion [34]

Answer:

ending RE 30,000

Explanation:

Using the acounting equation we solve for the beginning RE

<em>Assets = liab + equity</em>

155,000 = 85,600 + 52,400 + Retained Earnings

155,000 - 85,600 - 52,400 = <em>17,000</em>

beginning RE 17,000

net income

revenues 36,000 - 20,000 expenses = 16,000

dividends: 3,000

ending RE: 17,000 + 16,000 - 3,000 = 30,000

6 0
3 years ago
Two principles of fraud insurance​
Arturiano [62]

hi buddy

here is your answer

  • Insurance fraud involves any misuse of insurance policies or applications in order to illegally gain or benefit.
  • Insurance fraud is usually an attempt to exploit an insurance contract for financial gain. The majority of insurance fraud cases involve exaggerated or false claims.

hope it helps

please mark me pls

#sibi❤

8 0
2 years ago
Which describes risk aversion?
Savatey [412]
Risk aversion is the behavior in someone when they are exposed to uncertainty and are unsure of something due to being uncertain about it.  

In this case, reluctant for taking changes when making investment best describes risk aversion from an economics stand point. If someone isn't sure the return on investment they would get from investing or the risks associated with investing in something, they are more hesitant to do that. 
4 0
3 years ago
Read 2 more answers
The Outlet needs to raise $3.2 million for an expansion project. The firm wants to raise this money by selling zero coupon bonds
Pani-rosa [81]

Answer:

14,783.33 bonds

Explanation:

Given

Par value FV = $1000

n =20 * 2 =40

R= 7.80/2 = 3.90%

Price per bond:

price per bond :PV = \frac{FV/}{(1+r)^n}

     = \frac{000}{(1+0.039)^{40}}

      = \frac{1000}{4.619786467}

      = 216.46

No. of bonds to be issued = \frac{amount to raise}{ price per bond}

                                           = \frac{3,200,000}{216.46}  

                                            = 14,783.33 bonds

3 0
3 years ago
Which of these innovations would not qualify as a dominant design? a. The two wheeled diamond frame bicycle b. Direct online ins
Alecsey [184]

The best answer for this question would be:

d. The 5 string bass guitar

 

This innovation is not a dominant design because it has already been done, and that the attempt of this 5-string would result in a musical failure.

7 0
3 years ago
Other questions:
  • According to your text, a firm can survive and succeed in the long run if it successfully develops strategies to confront five c
    12·1 answer
  • A stock has annual returns of 5 percent, 21 percent, -12 percent, 7 percent, and -6 percent for the past five years. The arithme
    13·1 answer
  • One of the least desirable and routine tasks members of your team must do is taking minutes (notes) at team meetings. Proof that
    7·1 answer
  • Boeing is planning a new aircraft. Customers want more fuel efficiency without sacrificing any features of the current models. T
    8·1 answer
  • Ben Ervin often experiences emotions in a much stronger manner than most of his other colleagues. Events that do not provoke any
    8·1 answer
  • A limited partnership: Multiple Choice a. has an unlimited life. b. can opt to be taxed as a corporation. c. terminates at the d
    15·1 answer
  • The historical cost principle requires that when assets are acquired, they be recorded ata. appraisal value.b. cost.c. market pr
    10·2 answers
  • Pearland, Inc. has 8,000 shares of preferred stock outstanding. The preferred stock has a $90 par value, a 13% dividend rate, an
    15·1 answer
  • The consumer price index (CPI) and the producer price index (PPI) actually measure the same economic factors.
    14·1 answer
  • Hugh buys a new calculator for $125 from the PaperMills stationery store. A week later, he sees an ad from another stationery st
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!