Answer:
The correct answer is option A.
Explanation:
Normal goods have positive income elasticity, so when there is an increase in the income of the consumer, the quantity demanded of the normal goods will increase.
On the other hand, the inferior goods have a negative income elasticity. So when the income of the consumer increases the demand for inferior goods decline. This is because as income increases, the consumers will prefer normal goods.
Answer:
The answer is: C) A falling interest rate will lead to a movement along the demand curve for loanable funds
Explanation:
When you think about a loan, the interest rate is what you pay for getting the loan. So we can assume the interest rate is the price of the loan.
If the interest rates decrease, it is equivalent to a price decrease. Whenever the price of a good or service decreases, the quantity demanded for that good or service increases.
Answer:
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Answer is a , credit scores reflect how likely individuals are to repay Thier debts.. you buy a house , and say they need a credit check. it's to be sure that you're reliable to pay the bills or rent.
Answer:
A. Draw the cash flow diagram.
since the site doesn't include a drawing tool I just prepared a table to depict cash flows associated to years one through four:
Year Cash inflows
1 $50 million
2 $60 million
3 $70 million
4 $100 million
B. What is the present worth of the gains for the first three years?
- the present value of the first three cash flows = $50/1.1 + $60/1.1² + $70/1.1³ = $45.45 + $49.59 + $52.59 = $147.63 million
C. What is the present worth of the gains for all four years?
- the present value of the first three cash flows = $50/1.1 + $60/1.1² + $70/1.1³ + $100/1.1⁴ = $45.45 + $49.59 + $52.59 + $68.30 = $215.93 million
D. What is the equivalent uniform annual worth of the gains through year four?
- equivalent annual worth = (NPV x r) / [1 - (1 + r)⁻ⁿ] = ($215.93 x 0.1) / [1 - (1 + 0.1)⁻⁴] = 21.593 / 0.31699 = $68.12 million
