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3 years ago

If interest rate change, do we shift the investment demand curve or move along the curve. Explain why

Business

1 answer:

serg [7]3 years ago

8 0

Answer:

When interest rate changes, it will cause a movement along the investment demand curve.

Explanation:

This is because the relation between interest rate and investment is similar to that between product and price (interest rate is price to purchase investment). The quantity of investment demanded is negatively related to the value of interest rate in the market. When the interest rate increases (price increases), the demanded quantity of investment decreases as they have to pay more for investment.

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What will happen if the current asset price is greater than the present value of income? Question 2 options: Buyers will bid the

Inessa05 [86]

Answer:

The answer is: Buyers will bid the asset's price down until it equals the present value of income.

Explanation:

As the current asset price is greater than the present value of income, it is overpriced.

So, seller is much willing to sell at this price, however, buyers does not want to buy asset at this price as they only want to purchase it at the price equals to the present value of its income.

So, Buyers will bid the asset's price down until it equals the present value of income which is the level they are willing to buy and also at which the seller is willing to sell also.

5 0

3 years ago

An investor buys a call at a price of $4. 50 with an exercise price of $40. at what stock price will the investor break even on

Maksim231197 [3]

Break-even price of call option = Exercise price + Premium Paid

So,

Break-even Stock Price = 40 + 4.50 = $44.50

A stock market, stock market, or stock market, is a collection of buyers and sellers of shares (also called stocks) that represent ownership of a company. This includes securities listed on public stock exchanges and stocks that trade only privately. B. Private company shares are sold to investors through equity crowdfunding platforms. Investments are typically made with an investment strategy in mind.

shares can be classified according to the country in which the company is located. For example, Nestlé and Novartis are based in Switzerland and traded on the SIX Swiss Exchange, so they can be considered part of the Swiss stock market. ) on the U.S. Stock Exchange.

Learn more about Stock here: brainly.com/question/1166179

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4 0

1 year ago

Cristiano Ronaldo is comparing a manufacturing operation using regular lot-sizing and the same operation with a kanban/lean prod

Komok [63]

Answer:

On the off chance that we look at the absolute expense of stock in both the Kanban and standard parcel measuring technique, the complete expense of Kanban stock model will be not exactly ordinary part estimating. This is because of the way that the Kanban technique is a lean strategy and in this manner the abundance requesting of the stock is dodged and just the required quantitiy of the things is set. This decreases the stock administration and buy cost essentially making it less exorbitant than the normal parcel estimating.

4 0

3 years ago

Of those listed below, the best example of a pure public good is a. a public school b. a radio broadcast c. a hardcover copy of

Rufina [12.5K]

Answer:

b. a radio broadcast

Explanation:

The pure public good is a good which is non-rivalrous and non-excludable. Non-rivalrous represents that the goods does not diminshed in the case when more people consumed it while on the other hand, the non-excludable represents that the goods are available to all

Therefore as per the given options, the option b is correct

hence, the other options are incorrect

7 0

3 years ago

Cor-Eng Partnership was formed on January 2, 20X1. Under the partnership agreement, each partner has an equal initial capital ba

inessss [21]

Answer:

Cor's share of Cor-Eng's 20X1 net income is $60,000

Explanation:

Partnership Table

Cor$ Eng$ Total$

Ratio 60% 40% 100%

Assets 60,000 20,000 80,000

Goodwill 40,000 40,000

Initial Capital balance 60,000 60,000 120,000

Add: Net income 15,000 10,000 25,000

Less: Drawing -3,000 -9,000 -12,000

Year End balance 72,000 61,000 133,000

6 0

3 years ago