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velikii [3]
3 years ago
7

Juan is always researching different investment options. A few weeks ago he noticed some nice homes for sale in his neighborhood

. The listed prices were below market value. Today on the news he heard that the Federal Reserve lowered interest rates for banks and that banks have lowered interest rates for home mortgages in turn. As a result, there has been a huge boom in the number of people purchasing homes. What is most likely to happen as a result of the change in interest rates? Housing prices will go up and down due to changing fiscal policy. The market will experience more demand and the price of houses will go up. The price of houses will go down in response to the decreased demand. The prices for homes in that area will be stable due to the new monetary policy.
Business
2 answers:
lesya692 [45]3 years ago
7 0

Answer: The market will experience more demand and the prices of goods will rise up.

Explanation: According to a law, the higher the demand , there is a corresponding increase in the price. As a result of the lower interest rate of mortgage loans, more people have access to loan which leads to an astronomical increase in the number of house owners. Market experience more demand and therefore the prices of housing will rise up. It’s only obeying the law of demand and supply which states that the greater the demand, the higher the price.

rodikova [14]3 years ago
6 0

Answer:

B. The market will experience more demand and price of houses will go up

Explanation:

yaa

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= $64660 / $10.6

= 6100

b. The direct labor rate variance will be:

= (Actual rate per hour - standard rate per hour) × Actual labor hours

= (10.60 - 11.00) × 6100

= 2440F

Direct labor efficiency variance will be:

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The direct labor rate variance that was favorable shows that the manager paid a lower rate to its staffs while the direct labor efficiency variance that was unfavorable implies that the manager used less efficient workers. This indicates that a trade-off took place.

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5 0
3 years ago
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4 0
3 years ago
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Read 2 more answers
A project is:a.A set of sequential activities performed in a process or system. b.A revenue-generating activity that needs to be
ANTONII [103]

Answer:

d. A temporary endeavor undertaken

Explanation:

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3 years ago
Light sweet petroleum, inc., is trying to evaluate a generation project with cash flows:________.
tresset_1 [31]

Answer:

a-1. NPV for the project is $8,381,576.17

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b.  40.84 % and  40.84 %

Explanation:

The Net Present Value can be determined using a Financial Calculator as follows :

-38,600,000    CFj

62,600,000    CFj

- 11,600,000     CFj

11 %                   I/YR      

Shift NPV        $8,381,576.17        

A Company should accept projects that have a positive Net Present Value.Therefore, Accept this project.

Calculation of the Internal Rate of Return using a Financial Calculator :

-38,600,000    CFj

62,600,000    CFj

- 11,600,000     CFj

Shift IRR           40.84 %

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