All categories

3 years ago

Firms, households, and governments use the credit market for borrowing. The credit demand curve shows the relationship

Business

1 answer:

Pavel [41]3 years ago

3 0

Answer:

C) a higher real interest rate reduces a borrowing firm's profit and hence its willingness to borrow.

Explanation:

Companies borrow money to leverage their projects, investments or regular business activities. When they borrow money, they do it to earn more money themselves, not just to make a bank or a bondholder earn money. Since the company must repay its loans, the profit it makes using the loans must offset the money it must pay back in interest.

E.g. I borrow $100 for my business and the bank charges me $7 in interest per year, so I must be able to use that money to increase my profit by more than $7 a year.

You might be interested in

How has the internet affected the way interest groups do grass-roots lobbying?

RUDIKE [14]

With the onset of the internet and online means of outreach, interest groups and lobbying efforts have become more widespread and efficient in reaching an array of individuals. Given the ability to communicate with thousands or more at a time, they have been better able to frame and promote their interests.

7 0

4 years ago

This question explores the calculation of the unemployment rate. You will be provided some imperfect employment data for four di

Alik [6]

Answer:

Unemployment rate= 0.13= 13%

Explanation:

Giving the following information:

Of these 95 individuals, 75 are in the labor force and 65 are employed.

To calculate the unemployment rate, we need to use the following formula:

Unemployment rate= unmeployed population / labor force

Unemployment rate= 10/75

Unemployment rate= 0.13

7 0

4 years ago

Select the items that describe what happens at the equilibrium price. Producers supply the exact goods that consumers buy. Consu

Mekhanik [1.2K]

The items that describes what happens at the equilibrium price are:

Producers supply the exact goods that consumers buy.

Consumers have enough goods, at the given price.

Producers used their resources efficiently.

Equilibrium pricing is when the items demanded match the items supplied. When this happens, the demand and good available equal each other, hence, equilibrium. The pricing is exactly where it should be for consumers to want and purchase the good or service.

6 0

4 years ago

Read 2 more answers

Dairy Products, Inc., and Eden Farms Corporation form a joint venture to make and test-market Frosty Ice Cream. If this joint ve

IrinaVladis [17]

Answer:

The answer to this question is b. for a single project only.

Explanation:

A joint venture is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity.

The joint venture business usually last for the duration of the project it has come together to undertake. After which the individual businesses can go back to its usual operation.

Hence, the answer is b. for a single project only.

7 0

4 years ago

The traditional tasks performed by the HR department include all of the following except Group of answer choices labor relations

elena55 [62]

Participation in business decision making

5 0

3 years ago