Answer: Increase
Explanation:
Based on the above scenario given in the question whereby when the Fed increases ior enough, such that it will raise the intersection point with the vertical portion of reservesupply, then the equilibrium fed funds rate will increase.
There'll be a rise in the equilibrium fed funds since the intersection point has been raised.
Answer:
Accounts Payable -Yes
Salaries and wages payable - Yes
Explanation:
Accounts Payable is the money which the business owes its suppliers. It is a liability.
Salaries and wages refers to the debts of the business to its employees. It is also a liability.
The 2-year discount factor is 0.92. The present value of $1 to be received in year 2 is $ 0.92.
Given :
Amount receivable is $ 1.00
2 year discount factor is 0.92
Present value 1*0.92 = $ 0.92
The process of raising money or capital for any form of spending is referred to as finance. It involves directing different sources of funding, such as credit, loans, and investment money, to the businesses that can use them most effectively.
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Answer:
The answer is: C) Investment spending by businesses varies inversely with the interest rate.
Explanation:
This statement is true all the time. When a company evaluates the costs and benefits of an investment, interest rate plays a fundamental part in those calculations. The two basic reasons for that are:
- The higher the interest rate a company (or any individual) has to pay for a loan, the harder it is for the company to repay the loan.
- The interest rate a bank charges is usually correlated to the opportunity cost of an investment. The higher the interest rates banks charge, the higher the internal rate of return (which is used to calculate the Net Present Value of an investment) will be. This is because banks don´t print money, they take in deposits and then they loan the money the someone else. So if the interest rate the bank charges is high, usually the interest rates the bank pays for the deposits is also high. Instead of investing, a company might just put their money on the bank and earn a better return rate.
Answer:
Country x
Population size 50,000,000
Full time students 4,200,000
Not employed & not searching 6,000,000
Not employed and searching 2,336,000
Employed 29,664,000
Labour force is defined as the population of the economy currently engaged in some employment and those jobless but available or searching for employment
Labour force is 32,000,000
Labor force participation rate is the labor force divided by the population size.
= 64%
Unemployment rate is defined as members of a country not employed and are searching or seeking employment.
= 4.7%
