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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.

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A division's return on investment may be improved by increasing:
Kisachek [45]

Answer:

The correct answer is letter "A": capital turnover or sales margin.

Explanation:

Return on Investment, or ROI, measures the amount of return on an investment relative to the cost of investment. The return of an investment is divided by its cost to calculate ROI. The result is expressed as a percentage or as a ratio. Investments with positive ROI are likely to be successful while those with negative figures are possible to end up in losses.

<em> </em>

<em>To increase a division's ROI, the firm can increase the capital turnover (capital assets that allow the company to profit) or the sales margin (the difference between costs and the net profit of selling a unit of a product).</em>

5 0
3 years ago
n autarky, suppose that equilibrium sugar price is $100 per ton in Birdonia, a small agricultural nation. Now, suppose Birdonia
Rainbow [258]

Answer:

the domestic price of sugar will increase to $125.

Explanation:

Since the world price of sugar is higher than the domestic price, domestic producers of sugar will export their products in order to earn a higher profit. That will eventually lead to an increase in the equilibrium price from $100 (former equilibrium price) to a higher price equal to the world price ($125).

6 0
3 years ago
Assume that the cost of aluminum used by​ soft-drink companies increases. Indicate which of the following statements describing
spayn [35]

Answer:

a. false

b. true

c. true

d. false

Explanation:

a. The first statement is false as the demand for the soft drink do not declines

b. The second statement is true as the quantity demanded decreased

c The third statement is true as the supplied decreased

d. The fouth statement is false as the quantity suppied do not decline

Therefore the option b and C are correct and option A and D are incorrect

5 0
3 years ago
On April 1, 2021, Shoemaker Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules,
Vlad [161]

Answer:

Explanation:

The journal entries are shown below:

1.  Notes receivable A/c Dr $450,000

          To Cash A/c                               $450,000

(Being the notes receivable acceptance is recorded)

2. Interest receivable A/c Dr $40,500

      To Interest revenue                       $40,500

(Being the interest is collected)

Interest = Principal × rate of interest × number of months ÷ (total number of months in a year)

= $450,000 × 12% × (9 months ÷ 12 months)

= $40,500

The 3 months is calculated from April 1 to December 31

3.  Cash A/c Dr $504,000

             To Notes receivable A/c $450,000

             To  Interest receivable A/c $40,500

             To Interest revenue A/c      $13,500

(Being cash collected recorded)

Interest revenue = Principal × rate of interest × number of months ÷ (total number of months in a year)

= $450,000 × 12% × (3 months ÷ 12 months)

= $13,500

The 3 months is calculated from December 31 to April 1

6 0
3 years ago
Which of the following is not an example of income? wages food tips allowance.
kondaur [170]

Food because income is money you take in.

4 0
3 years ago
Read 2 more answers
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