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
Dominik [7]
3 years ago
6

Suppose that in the market for loanable funds, the governement is currently running a deficit, and net exports are negative. The

n, there is a sharp recession, causing consumer spending on both domestic and imported goods to fall (just as is currently happening), so that the size of the trade deficit shrinks. What effect will this have on the market for loanable funds
Business
1 answer:
balu736 [363]3 years ago
5 0

Answer:  4. Demand will shift inwards, lower rates and decreasing lending.

Explanation:

People demand loanable funds for spending on consumption and investment. If there is a recession, people will buy less goods and companies will invest less as well.

This will reduce the demand that people and companies have for loanable funds. The demand will therefore shift inwards to the left and lead to lower rates and decreased lending.

You might be interested in
_____ are items such as utilities, rent, and food—items that one can’t do without. Needs
gulaghasi [49]

Answer:

Needs

Explanation:

8 0
4 years ago
Suppose the government wants to reduce the total pollution emitted by three local firms. Currently, each firm is creating 4 unit
HACTEHA [7]

Answer:

The government sets pollution standards using regulations

Explanation:

For the government of a country to effectively reduce pollution by industries present in it's nation, pollution standards needs to be put in place with the use of laws/regulations backing them.

For example in the question, the government can make set a pollution standard that the industry must not go beyond 6 units of pollution otherwise a fine would be charged for defaulting. This would persuade the industry to reduce their pollution rate.

3 0
3 years ago
A preferred stock that pays an annual dividend of $10, has a par value of $100, and has a required return of 5% will be valued a
SCORPION-xisa [38]

Answer:

The answer is true

Explanation:

Vo = D/Kp

Vo is the value of preferred stock/shares

D is the dividend

Kp is the cost of preferred stock/share

To confirm whether the value of stock is actually $200, we perform the following:

D = $10

Kp = 5% or 0.05

10/0.05

=$200.

The answer is true

5 0
3 years ago
Which of the following is​ true? A. The elasticity of demand is constant along most demand curves. B. The elasticity of demand v
Mekhanik [1.2K]

Answer:C

Explanation:

The elasticity of demand varies among most demand curves due to price change

4 0
3 years ago
Read 2 more answers
Find the after-tax return to a corporation that buys a share of preferred stock at $47, sells it at year-end at $47, and receive
kipiarov [429]

Answer:

5.80%

Explanation:

Computation of after-tax return

Based on the information given the total before-tax income will be $3.

Since the firm is in the 30% tax bracket this means that the taxable income will be calculated as:

Taxable income =(0.30 ×$3)

Taxable income = $0.9

The next step is to calculate for the Taxes

The taxes will be = (0.30 ×$0.9) = $0.27

Now let calculate for the After-tax income

After-tax income = ($3 - $0.27) = 2.73

The last step is to find the After-tax rate of return using this formula

After-tax rate of return =After-tax income/Share of preferred stock

Let plug in the formula

After-tax rate of return = ($2.73/$47)

After-tax rate of return=0.058×100

After-tax rate of return = 5.80%

Therefore After-tax rate of return will be 5.80%

4 0
3 years ago
Other questions:
  • The compensation for investors who tolerate extra risk is called:
    14·1 answer
  • PackMan Corporation has semiannual bonds outstanding with nine years to maturity and the bonds are currently priced at $754.08.
    7·1 answer
  • ABC Telecom Inc. currently is financed with 10% debt and 90% equity. However, its CFO has proposed that the firm issue new long-
    10·1 answer
  • Brokers prepare a broker file that has all of the documents that may have a material effect upon the rights or obligations of a
    9·1 answer
  • You are trying to decide which of two automobiles to buy. The first is American-made, costs $3.0500 x 104, and travels 28.0 mile
    9·1 answer
  • 3M Company executives were perplexed when the company's Scotch-Brite floor-cleaning product initially produced lukewarm sales in
    6·1 answer
  • A risk neutral monopoly must set output before it knows for sure the market price.
    6·1 answer
  • On April 1, year 1, Mary borrowed $130,000 to re-finance the original mortgage on her principal residence. Mary paid 1 points to
    12·1 answer
  • 82) At the current price of $2, how much does the firm want to produce?
    14·1 answer
  • What do you understand by the term social structure? Explain social roles in the context of social structure and quote real life
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!