Answer:
d. $1,000
Explanation:
Implicit cost is the cost which has been incurred, and cannot be avoided. It is best described as an opportunity cost that has been foregone, here the funds have been borrowed specially for coffee shop. Interest expense of $8,000 is the cost for such borrowing, also the amount withdrawn from savings account have been used for coffee shop but the interest income foregone is the opportunity cost = $50,000.00
2% = $1,000 is implicit cost.
Therefore, correct option is d. $1,000
Answer:
Supply, interest
Explanation:
The money supply can be regarded as supply of all the currency as well as other liquid instruments in the economy of a particular country.
Money supply can be manipulated by central bank by influencing interest rates, as well as printing money. The federal reserve can also engage in open market operations which is the selling/buying security or bond of government. It should be noted that By manipulating the money supply the Federal reserve can change interest rates, thus encouraging or dicouraging additional investment.
Because of the political instability, what will happen to U.S. is that its Net exports would fall which by itself would decrease U.S. aggregate demand.
When the people from other countries feared for their asset, they will stop importing goods from U.S.
- This will make import reduce and also, the export from U.S. to reduce as well.
In conclusion, because of the political instability, what will happen to U.S. is that its Net exports would fall which by itself would decrease U.S. aggregate demand.
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The statement in this question is true.
Answer: Option A.
<u>Explanation:</u>
With the collapse in the real estate markets, in the collapse of the stock markets or the illiquidity of the securities in the United States of America, the demand for the treasury bonds of the country increased because people wanted to have some kind of investment and security in their hands.
But with the increase in the demand of these bonds of the country, there led to an increase in the price of the bond because the demand was more and the supply was less of these bonds. As a result of this the yield to be recovered from these bonds reduced.