Answer:
The correct answer is (b)
Explanation:
The kids opened their own lemonade stand which led to an increase in the overall supply of lemonade. The increase in the overall supply of lemonade will lead to a decrease in the equilibrium price. Now, Sabrina must decrease the price of lemonade to compete with competitors. Increase in market competition always leads to a decrease in equilibrium price.
Answer:
If the interest rate decreases, you will be able to pay back the loan in only 58 months, which is 27 months less than with the higher interest rate.
Explanation:
I prepared an amortization schedule using the 21.8% rate, an it would take 85 months to pay of your debt completely. But if the interest rate decreases to 12.4%, it will take you only 58 months.
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The quantity of money demanded <u>increases</u> and the nominal interest rate <u>falls.</u>
In the short run, if the Fed(Federal Reserve) increases the quantity of money, the quantity of money demanded will increase and the nominal interest rate falls.
The quantity of the money supplied and the nominal interest rates has an inverse relation. That is, when there is a huge supply of money in a short-term, it will cause an increase in the nominal interest rate.
The nominal interest rate refers to the interest rate before adjusting to inflation or price-hike. It balances the supply and demand of money.
So when there is an increase in the supply of money ,there will be the resulting increase in the demand of money too. The total money that the population wants to hold is referred as the money demanded.
Learn more about Fed( US Federal Reserve) at brainly.com/question/25843620
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Answer:
c. $125.00
Explanation:
Let us assume the x for invested in portfolio
Invested proportion × expected return of the optimal portfolio + (1 - invested proportion) × risk free rate = expected return
x × 7% + (1 - x) × 3% = 8%
7% x + 3% - 3% x = 8%
4% x = 5%
X = 1.25
Now the invested amount would be
= 1.25 × $500
= $625
So, the borrowed amount would be
= $625 - $500
= $125
I think that it might be C
