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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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The best way for you to negotiate an increase in starting salary is to research similar jobs, note what their starting pay is, and provide the list to your boss. Most jobs will match what other people are paying because they need employees. The best way to lose your job right off the bat is to tell your boss that he is a cheapskate. I do not advise this.
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What are some major factors that have contributed to the recent increase in the number of lawsuits against auditors and the size
telo118 [61]

Answer and Explanation:

There are several reasons why the number of lawsuits against auditors and the size of awards to plaintiffs has increased. Mainly, <em>Certified Public Accountant (CPA) firms are most likely to solve legal issues with companies in front of inaccuracies in audits without a judicial process</em> to avoid the fees, possible penalties they will have to take charge if found at fault. Thus, more lawsuits are created under that situation because those practices are not considered legal even if the plaintiff decides to come up to a resolution that way. This is because firms could still be operating unethically unless the law enforces laws in their operations.

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3 years ago
On November 1, 2019, Davis Company issued $30,000, ten-year, 7% bonds for $29,100. The bonds were dated November 1, 2019, and in
Tcecarenko [31]

Answer: A.) $1,095

Explanation:

Bond value = $30,000

Rate = 7%

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Semi annually:

$2100 / 2 = $1050

(Bond value - issue price) ÷ (period × 2)

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8 0
3 years ago
When Larry purchased a Jet Ski personal watercraft for $4,999, he was also given free financing and three hours of free lessons
stellarik [79]

Answer:

Value added

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3 years ago
Impala is currently producing 100 units of a necessary component part by incurring $42,000 in direct materials, $8,750 in direct
photoshop1234 [79]

Answer:

If Impala decides to buy from the external source , it would then save the fixed of $1,750

Decision: Impala should be buy from the external source

Explanation:

<em>To determine the appropriate course of action, we shall determine whether there would be a net savings in cash flow as a result of purchasing externally or not.</em>

The relevant cash flows figures include:

  1. Internal variable cost of production
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Variable cost of internal production = 42,000 + 8,750 + 15,750 = 66,500

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Decision: Impala should be buy from the external source

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