Answer:
Dan is the "supplier" of the funds
Explanation:
Given their willingness to lend their money, savers in this marketplace are on the supply side of the economy.
What is the loanable fund market?
The market that connects savers and borrowers is the loanable funds market.
Model of the market for loanable money
To make what occurs in the economy when borrowers and savers interact more understandable, the loanable funds market model is utilized. A modification to the market model for commodities and services is the market model for loanable funds. In this hypothetical scenario, the exchange of money takes the place of a good and the interest rate replaces the price. In essence, it describes how loans are made and borrowed money is exchanged between borrowers and lenders.
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Answer:
The correct answer is economic growth.
Explanation:
A production possibility curve or frontier shows the different combinations or bundles of two goods that can be produced using limited resources. The curve is concave because of increasing opportunity cost.
An outward shift in the production possibility curve shows an increase in the level of production. This can happen because of two reasons
,
- Increase in the quantity of resources available
, and
- Improvement in technology
Both of these factors will help in increasing the level of production. In other words, we can say that the outward shift in the production possibility curve shows economic growth.
C) When used, both take money directly out of a bank account.
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Answer:
your answer would be false
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Answer:
Book value per share is $3.5, Earnings per share is $0.48, Market-to-book ratio is 2.0x; P/E ratio = 18.75
Explanation:
1. In order to calculate the book value of the shares we divide the total value of the shares by the number of shares which is $35,000,000/10,000,000 shares = $3.5
2. Earnings per share is derived by dividing the total earnings (after subtracting preference dividends, but in this case we have common stock dividend so we do not subtract) by the number of shares outstanding. i.e. $4,800,000 / 10,000,000 shares = $0.48
3. Market to book ratio is derived by dividing the market value of the outstanding shares by its book value. Therefore ($9*10,000,000 shares)/$35,000,000 = 2.0 (written as 2.0x, implying that the market value of the shares of Roxie's Bed & Breakfast Corp. can cover its net assets (or equity) twice.)
4.The Price Earnings ratio is derived by dividing the Price of the shares by the earnings per share.i.e. $9/0.48(derived in 2 above) = 18.75.
