Answer: A. The inability of a plant asset to meet its demands.
Explanation:
When something is said to be inadequate, it means that it is not in enough quantity or rather lacks the capacity to perform the tasks that it is needed for.
The same goes when this is being spoken in relation to an asset. A plant asset that is inadequate is unable to meet the demands that it was acquired for.
Solution :
Given :
The bonds offer a 
of 4.5% per year
Tax rate = 10% = 0.10
Inflation rate = 2
= + 
= 2 + 4.5
= 6.5
= 
= 
= 5.85
After tax real interest rate = 
-
= 5.85 - 2.0
= 3.85
= 7.0
= +
= 7 + 4.5
= 11.5
= 
= 10.35
= 11.5 x (1 - 0.10)
= 11.5 x 0.90
= 10.35
= -
= 10.35 - 7.0
= 3.35
Putting all the value in table :
Real interest Nominal interest After tax nominal After tax
rate rate interest rate interest rate
2.0 4.5 6.5 5.85 3.85
7.0 4.5 11.5 10.35 3.35
Comparing with the 
, a 
will increase the after after tax real interest rate when the government taxes nominal interest income. This tends to encourage saving, thereby increase the quantity of investment in the economy and the increase the economy's long-run growth rate.
Answer:
Saving and investing.
Explanation:
Savings is basically putting aside current money for future use. Investing is committing money to make profit over period of time.
The market demand curve would be 1000 - 0.125Q.
<h3>How to calculate the demand curve?</h3>
It should be noted that the market demand curve will be the sum of the individual demand curve.
The market demand curve will be calculated thus. Mary’s demand curve is 5P = 5000 – 1.25QM. Here, p = 1000 - 0.25QM
Jack’s demand curve for donuts is given by P = 1000 – 0.5QJ. Helen’s demand curve is given by QH = 2000 – 2P. This will be P = 1000 - 0.5QH.
The slope will be:
= 0.5 × 0.25
= 0.15
The demand function of Jack and Helen are the same. The demand curve will be 1000 - 0.125Q.
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Determinants of long a firm should borrow money include are:
⇒the seasonal environment of the business
⇒the cost of inventory
⇒the cash flow forecast
The term "capital structure" describes how a company decides to finance its projects and assets through a combination of internal resources, debt, and equity.
To lower their risk of insolvency, remain effective, and ultimately maintain or become profitable, a company should determine the ideal debt to equity ratio.
The capital structure of a company is influenced by a wide range of variables, including leverage or trading on equity, company growth, the nature and scale of the business, the desire to maintain control, the flexibility of the capital structure, investor requirements, the price to float new securities, the timing of the issue, the corporate tax rate, and the legal requirements.
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