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
STatiana [176]
3 years ago
10

Greater optimism about the expected profits from investment projects A. shifts the demand for loanable funds curve leftward. B.

causes a movement upward along the demand for loanable funds curve. C. causes a movement downward along the demand for loanable funds curve. D. shifts the demand for loanable funds curve rightward.
Business
1 answer:
nata0808 [166]3 years ago
4 0

Answer:

Option (D) is correct.

Explanation:

When there is a greater optimism in the investors about the future profits from  various investment projects then this will induces investors to invest more on these projects.

Hence, there is a need of more loanable funds and the demand for loanable funds increases. This will shift the demand curve for loanable funds rightwards. All the investors in the market wants to earn more profits in the future. This would also increases the interest rate on borrowings, because of the higher demand for loanable funds.

You might be interested in
Select the correct answer. Which part of a speech contains the speaker’s arguments, ideas, examples, and proof? A. the title of
Marina86 [1]

Answer:

Its in the body o

Explanation:

6 0
3 years ago
A U.S. firm sells merchandise today to a British company for £150,000. The current exchange rate is $1.55/£ , the account is pay
Andre45 [30]

Answer:

b

Explanation:

4 0
3 years ago
You've told Dan, a new contact, that you're looking for a qualified sales representative. Now you want to find out if there's an
kenny6666 [7]
The answer is B give him your business card
8 0
3 years ago
Costly Corporation is considering using equity financing. Currently, the firm's stock is selling for $31.00 per share. The firm'
Setler [38]

Answer:

Cost of external equity= 26.9%

Explanation

<em>According to the dividend valuation, the value of a stock is the present value of expected future dividends discounted at the required rate of return.</em>

The model can me modified to determined the cost of equity having flotation cost as follows:

Ke = D(1+r )/P(1-f) + g

Ke= Cost of equity

D- current dividend,

D(1+g) - dividend next year

p- price of stock - 31,00$

f - flotation cost - 14%

g- growth rate - 7%

Ke= 5.30/31× (1-0.14)  +  0.07

 = 0.2687997  × 100

= 26.9%

4 0
3 years ago
Your job pays you $1,600 per month.all taxes combined reduce your pay by 25%.your current expenses are $1,200 per month .you wan
Reil [10]
No you can not afford it

1600•0.25= 400
1600-400=1200
1200-1200=0
6 0
3 years ago
Other questions:
  • The annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $220,0
    6·1 answer
  • Outlining reasons why the customer's concern is not right is it effective
    11·1 answer
  • Magazines and journals are examples of periodical resources. True False
    15·2 answers
  • Is there a difference between concurrency and paralleism. If there is how are they in common, and how do they differ?
    11·1 answer
  • Mm mjhuuuuuuuuuuuuuuuuuuuuuh
    9·2 answers
  • Foreign investment in U.S. companies continues to be strong. When Belgian-based In-Bev purchased the largest beer company in the
    14·1 answer
  • A policy of permitting the people of a country to buy and sell where they please, without restrictions, is called:
    11·1 answer
  • At Bargain Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player at full capacity that normally
    7·1 answer
  • Beginning in 2001, one of the goals of the war in afghanistan was to use force to seize oil supplies. contain the spread of comm
    14·1 answer
  • Perit Industries has $165,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternat
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!