Answer:
Giancarlo’s initial investment in the Suzuki XL7 is $17,122
Explanation:
The computation of the initial investment is shown below:
= Negotiated price of new Suzuki + Taxes and fees charges on purchase of a new car - proceeds from the old car
= $24,675 + $1,732 - $9,285
= $17,122
The estimated value of the old, new car and the annual repair cost is not relevant for computing the initial investment. Hence, we ignore it and not considered this cost.
Answer:
a. Savers who lend money are willing to accept a lower minimum interest rate than potential savers who do not lend money.
b. Investment projects that are financed by savers have larger rates of return than projects that do not receive financing.
Explanation:
Loanable funds refer to the aggregate amount of money that all sectors, entities and individuals within an economy have decided to keep as an investment, instead of spending on personal consumption, by saving and giving them out as loans to borrowers.
The market for loanable funds is in equilibrium when the supply of loanable funds by the saver is equal to demand for loanable funds by the borrowers at a given interest rate.
When the market for loanable funds is in equilibrium, efficiency is maximized because projects that have higher rates of return are given priority to be funded first before the projects with lower rates of return are funded. The reason is that savers that have lowest costs of lending provides funds for the projects that have highest return rates in equilibrium. However, potential saver who do not lend money will prefer a higher interest rates.
Therefore, the correct options related to the two aspects of efficiency that the equilibrium of market for loanable funds exhibits are as follows:
a. Savers who lend money are willing to accept a lower minimum interest rate than potential savers who do not lend money.
b. Investment projects that are financed by savers have larger rates of return than projects that do not receive financing.
Answer:
The correct answer is: Emotional contagion.
Explanation:
The emotional state of an individual can be affected by the exposure to emotional expressions of others around which means that the emotional state can be transferred from one person to another even in online interactions through a process called emotional contagion.
Emotional contagion implies an individual connecting its emotions to others' moods which is likely to be reflected in both parties' behavior.
Answer:
The answer is:
The Kincaids can sue David and Sandra Dess because they can be considered intended beneficiaries of the contract between them and Sirva.
Explanation:
Intended beneficiaries are third parties in a contract that can sue the promisor for breach of contract.
In the contract, David and Sandra agreed to fully disclose all information about the property. Under the terms of the contract, they agreed that Sirva and "other prospective buyers" could rely on their disclosures.
