1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
stepladder [879]
4 years ago
10

If the government reduces transfer payments, what happens to the budget deficit? What curve does this change in the market for l

oanable funds, which direction does it shift, and what happens to the equilibrium interest rate?
Business
1 answer:
sleet_krkn [62]4 years ago
5 0

Answer:

  • The budget deficit will decrease
  • The curve it changes is the loanable funds curve
  • The loanable funds curve shifts to the right
  • The equilibrium interest rate falls

Explanation:

The reduction in transfer payments by Government will cause the budget deficit of the Government to decrease and also the the decrease in the Budget deficit will lead to the availability of loanable funds thereby causing the loanable funds curve to shift to the right.

With the availability of loanable funds the equilibrium interest rate will fall below its usual equilibrium level.and the Government can reduces transfer payments to achieve all of this.

You might be interested in
Texas Inc. has 8,000 shares of 6%, $125 par value cumulative preferred stock and 83,000 shares of $1 par value common stock outs
vesna_86 [32]

Answer:

the annual dividend on the preferred stock is $60,000

Explanation:

The computation of the annual dividend on the preferred stock is shown below:

= Number of shares × par value per share × dividend percentage

= 8,000 shares × $125 × 6%

= $60,000

Hence, the annual dividend on the preferred stock is $60,000

We simply applied the above formula and the same is relevant

8 0
3 years ago
If the yield curve is upward sloping, then short-term debt will be cheaper than long-term debt. Thus, if a firm's CFO expects th
Vinil7 [7]

Answer:

A. True

Explanation:

As per the given situation, if the yield curve is sloping upwards, it indicates that short-term interest rates are smaller than long-term interest rates.

In this case the bonds have an opposite relationship between the bond price and interest rates and If the short-term rates are lower then the value of the short-term bonds which includes the current liabilities, is higher. Short term bonds are loans to be settled in one.

As we know that

Current ratio = Current assets - Current liabilities

Current liabilities include short-term debt, hence the short-term value is higher as a result of a low current ratio.

Therefore the given statement is true

3 0
4 years ago
On January 3, 2019, Carey discovers his diamond bracelet has been stolen. The bracelet had a fair market value and adjusted basi
Mama L [17]

Answer: $1,900

Explanation:

Theft loss deduction is calculated by adjusting the fair market value of the asset for a theft loss floor limitation of $100 and 10% of the person's AGI.

Theft loss deduction is:

= Fair value -Theft floor limitation - 10% of AGI

= 7,000 - 100 - (10% * 50,000)

= $1,900

3 0
3 years ago
List the reasons for the near collapse of government finances in france.
DochEvi [55]

Answer:

the future of our games are based on the

Explanation:

wgvsgshshhs you have any questions or concerns you yyyay you have any questions or concerns please visit the plug-in settings please log in to resume watching tv you are not the intended recipient you are not the intended recipient you are not the intended recipient you are not the intended recipient you are not the intended recipient you are not the intended recipient you are notikaussjshshshshgsgsggggggagsggggßdfçghgffcvvvbhhhbbhjjnnnbvczqertuopqwerttyuuiioppojjfdaasfghjklbuhhvbnnmmnvccffff you have any questions or concerns

4 0
3 years ago
TRUE/FALSE one of the attractive features of mutual funds is that they offer small investors a diversified portfolio and profess
Ugo [173]

The fact that mutual funds provide small investors with a diverse portfolio and experienced management is one of their appealing qualities.so statement is true.

<h3>What draws small investors to mutual funds?</h3>

Investors have access to a greater variety of investments through mutual funds than they could on their own. By pooling your funds, you may take advantage of economies of scale. The monthly contributions improve the investor's assets. Funds are more liquid because they are often less volatile.

The ability to diversify and thereby distribute risk over a number of investments is one of the reasons mutual funds are so well-liked by investors. People are drawn to mutual funds because they provide an opportunity for typical individuals to invest in professionally managed funds.

To know more about mutual funds visit:

brainly.com/question/9965923

#SPJ4

3 0
1 year ago
Other questions:
  • What activities might require you to provide your social security number?
    9·1 answer
  • Contractionary monetary policy causes _____ in the price level in the short run and _____ in the price level in the long run.
    9·1 answer
  • When opening a checking or share draft account, which would likely be the most important consideration?
    15·1 answer
  • A high degree of_____interdependence exists when team members share in the rewards that the team earns.
    6·1 answer
  • The payback method of project analysis: Multiple Choice considers the time value of money. is, generally speaking, the best meth
    8·1 answer
  • Posada Company acquired 7,000 of the 10,000 outstanding shares of Sabathia Company on January 1, 2019, for $840,000. The subsidi
    15·1 answer
  • Corporate taxes are a type of
    14·2 answers
  • Orchard Fresh, Inc., purchases apples from local orchards and sorts them into four categories. Grade A are large blemish-free ap
    6·1 answer
  • Suppose that an appraiser has come to the following conclusions in evaluating the subject property. Due to the dramatic shift in
    8·1 answer
  • blistre company operates on a contribution margin of​ 30% and currently has fixed costs of​ $550,000. next​ year, sales are proj
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!