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puteri [66]
3 years ago
10

what would happen in the market for loanable funds if the government were to increase the tax on interest income the demand for

loanable funds would shift right the supply of loanable funds would shift right the supply of loanable funds would shift left
Business
2 answers:
Elenna [48]3 years ago
5 0

Answer:

Supply of loanable funds shift to the left

Explanation:

When there is an increase in the tax of interest income by government, it will lead to an increase in the interest rate will in turn will lead to a left shift in the supply of loanable funds. A shift to the left means that there is a decrease in supply.

The decrease in supply leads to an increase equilibrium interest rate and reduction in equilibrium quantity of loanable funds as demand of loanable funds now exceed the given supply.

GaryK [48]3 years ago
4 0

Answer:

Explanation:

Base on the scenario been described in the question if the government will increase the tax on interest income the demand for loanable funds would shift to the left. A shift to the left means that there will be a reduction or decrease in supply. When we have a decrease in supply, it will tends to increase equilibrium interest rate and the decrease in equilibrium loanable money as result of that, the supply will be exceeded by the demand of loanable money.

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Calculate income from operations for Jonas Company based on the following data: Sales $764,000 Operating expenses 52,500 Cost of
Elina [12.6K]

Answer:

173,500

Explanation:

Operating income is income derived from a business's operations, after deducting operating expenses e.g. wages, depreciation, and cost of goods sold

Operating income = sales - operating expenses- cost of merchandise sold

$764,000 - 52,500 - 538,000 = 173,500

I hope my answer helps you

7 0
3 years ago
J Corp. common stock is priced at $36.50 per share. The company just paid its $0.50 quarterly dividend. Interest rates are 6.0%.
viva [34]

Answer:

Explanation:

The time (T) = 6 months = 6/12 years  = 0.5 years

Interest rate (r) = 6% = 0.06

The stock is priced [S(0)] = $36.50

The price the stock sells at 6 months (V_c) = $3.20

European call (K) = $35

The price (P) is given by:

P=V_c+K.e^{-rT}-S(0)+Dividends\\But, Dividends = 0.5*e^{-0.25*0.06}+ 0.5*e^{-0.5*0.06}\\Therefore, P=V_c+K.e^{-rT}-S(0)+0.5*e^{-0.25*0.06}+ 0.5*e^{-0.5*0.06}\\Substituting:\\P=3.2+35*e^{-0.06*0.5}-36.5+0.5*e^{-0.25*0.06}+ 0.5*e^{-0.5*0.06}\\P=3.2+33.9656-36.5+0.4926+0.4852\\P=1.64

The price of a 6-month, $35.00 strike put option is $1.65

5 0
3 years ago
​a _____ controls database operations, including storing, retrieving, updating, and deleting data.
Radda [10]

Answer: A data language controls database operations including storing, retrieving, updating and deleting data

Explanation: This is the definition for manipulation

3 0
3 years ago
Read 2 more answers
What is broad​ averaging, and what consequences can it have on​ costs?
mrs_skeptik [129]
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7 0
3 years ago
Read 2 more answers
Which of the following represents a market failure?
Marat540 [252]

Answer:

a. Shopping for used cars when the seller has private information about the car unavailable to the buyer

Explanation:

When the market is not able to produce an efficient quantity, then it is said that market is failed. This might happens due to many reasons and asymmetric information is one of them. When there is an asymmetric information, then the sellers of the used car have information about it, but the buyer do not have the full information about the used car.

Hence this leads to inefficient outcome and therefore market fails.

Hence it can be said that a market failure example is Shopping for used cars when the seller has private information about the car unavailable to the buyer.

Hence option first is the correct answer.

7 0
3 years ago
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