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Alla [95]
2 years ago
9

Which of the following is one of the reasons that the supply curve for loanable funds is upward sloping? A lower real interest r

ate makes saving less appealing. A higher real interest rate makes borrowing less expensive. A lower real interest rate encourages domestic consumers to purchase foreign securities and discourages foreigners from purchasing domestic securities. A lower interest rate makes borrowing less expensive
Business
1 answer:
Andru [333]2 years ago
4 0

Answer:

A lower real interest rate makes saving less appealing.

Explanation:

The lower the interest rate, the lower the amount saved and the higher the interest rate, the higher the amount of money saved. There is a positive relationship between interest rate and the supply of loanable funds. This is why the supply curve for loanable funds is upward sloping

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Dake Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average
Digiron [165]

Answer:

Instructions are below.

Explanation:

Giving the following information:

When it produces and sells 4,000 units, its average costs per unit are as follows:

Variable manufacturing overhead $1.40

Fixed manufacturing overhead $ 2.60

Units produced= 3,000

<u>To calculate the unitary indirect manufacturing cost, you can use two different methods</u>. The variable method only uses the variable manufacturing overhead. The absorption method uses the total unitary overhead.

Total fixed overhead= 2.6*4,000= 10,400

<u>Variable costing method</u>:

Unitary indirect manufacturing cost= $1.4

<u>Absorption costing method:</u>

Unitary fixed overhead= 10,400/3,000= $3.47

Unitary indirect manufacturing cost= 1.4 + 3.47= $4.87

5 0
3 years ago
S is close to retiring and would like to purchase a policy that will yield greater gains than bonds, but will still protect the
Lady bird [3.3K]
The answer is Equity Index Insurance.  The equity index insurance is a stable life insurance policy that allows policyholders to tie build-up values to a stock market index. The indexed universal life insurance policies characteristically comprise a minimum definite fixed interest rate constituent along with the indexed account selection.  The equity index insurance work as the total sum of cash value is accredited with interest founded on increases in an equity index but it is not openly capitalized in the stock market. Some policies permit the policyholder to select numerous index
7 0
2 years ago
Mary wants to help pay for beth's education(her granddaughter). she has decided to pay for  half of the tuition costs, which are
STALIN [3.7K]

First, you have to calculate the amount of tuition when the student reaches age 18. Do this by multiplying $11,000 by 1.07 each year from age 12 until it reaches age 18. Thus, 7 times.

At age 18: 16,508

At age 19: 17,664

At age 20: 18,900

At age 21: 20,223


Then, we use this formula:

A = F { i/{[(1+i)^n] - 1}}

where A is the monthly deposit each year, F is the half amount of the tuition each year illustrated in the first part of this solution, n is the number of years lapsed.

At age 18:

A = (16508/2) { 0.04/{[(1+0.04)^6] - 1}} = $1,244.389 deposit for the 1st year

Ate age 19

A = (17664/2) { 0.04/{[(1+0.04)^7] = $1,118 deposit for the 2nd year

At age 20:

A = (18900/2) { 0.04/{[(1+0.04)^8] = $1,025 deposit for the 3rd year

At age 21:

A = (18900/2) { 0.04/{[(1+0.04)^8] = $955 deposit for the 4th year

3 0
3 years ago
Buyers Sam and Linda Pope are entering into a contract with sellers, Jim and Alana Jones in which part of the sale price of the
Alina [70]

Answer:

d) Installment sales contract

Explanation:

A contract is described as an agreement between two or more parties commits to undertakes specific obligations.  In a sale contract, the buyer and seller agree to the exchange or foods or services for a consideration called price.

An installment sale contract is an agreement that allows the buyer to make payment for the goods or services over time. Once an agreement has bee reached, the buyer takes possession of products and is free to use them. The buyer makes regular payments for the goods (installments) and will claim ownership upon completing payments. An installment sale contract is a form of credit sale.

8 0
3 years ago
Differential Analysis for a Lease or Buy Decision
il63 [147K]

Answer:

Lease Equipment $150,000

BUY EQUIPMENT$134,700

Differential Effects-$15,300

The company should choose BUY EQUIPMENT which is Alternative 2

Explanation:

Preparation of the differential analysis dated March 15 to determine whether Laredo Corporation should lease (Alternative 1) or purchase (Alternative 2) the equipment

Differential Analysis

Lease (Alt. 1) or Buy (Alt. 2) Equipment

March 15

Lease Equipment (Alternative 1); Buy Equipment

(Alternative 2); Differential Effects (Alternative 2)

Costs:

Purchase price $0 $120,000 $120,000

Freight and installation $0 $1,500 $1,500

Repair and maintenance (6 years) $0 $13,200.$13,200

($2,200*6=$13,200)

Lease (6 years) $150,000 $0 -$150,000

($25,000*6)

Total costs $150,000 $134,700 -$15,300

Based on the above calculation the company should choose BUY EQUIPMENT which is Alternative 2

4 0
3 years ago
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