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bezimeni [28]
2 years ago
8

When the expected inflation rate increases, the real cost of borrowing ________ and bond supply ________, everything else held c

onstant.
a) increases; increases
b) increases; decreases
c) decreases; increases
d) decreases; decreases
Business
1 answer:
Dafna1 [17]2 years ago
4 0

Answer:

The answer is: C) decreases ; increases

Explanation:

The real cost of borrowing is calculated by adjusting the nominal cost of borrowing by the inflation rate. This means that if the inflation rate increases, then the adjusted real cost of borrowing will decrease.

The inflation rate increases when country´s money supply growth rate outpaces its economic growth. So when the inflation rate increases (lowering the real cost of borrowing), borrowers are more likely to issue bonds, increasing the bond supply.

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uranmaximum [27]

<u>C.</u> Satisficer

<h3><u>What is a satisficer?</u></h3>

A decision-making method called satisficing aims for a satisfactory or adequate outcome rather than the best one. Satisficing concentrates on practical effort when faced with tasks rather than exerting maximal effort to achieve the ideal result. This is due to the possibility that pursuing the ideal outcome will result in an unnecessary drain on time, effort, and resources. In order to achieve the first feasible solution that yields minimally acceptable results, the satisficing strategy can involve taking a minimalistic approach. Satisficing reduces the range of options that are taken into account to obtain those objectives, eliminating alternatives that would necessitate more demanding, complicated, or impractical efforts in an effort to produce more ideal outcomes.

Learn more about satisficer with the help of the given link:

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4 0
1 year ago
Swan Finance Company, an accrual method taxpayer, requires all of its customers to carry credit life insurance. If a customer di
posledela

Answer:

Recognize an income/loan repayment of $1,300, and cancel the debt of $200 from the earlier recognition of income

Explanation:

Swan would only recognize an income/loan repayment of $1,300 having already recognized an initial income of $200 of the $1,500 owed before the death of the customer.

Accounting entries would be as follows.

Debit Bank account: $1,500

Credit income/loan repayment account: :1,300

Credit receivables: $200.

The credit of $200 in receivables would be treated as shown above due to the income of $200 already recognised and which would have been treated as follows when it was recognized,

Dr: receivables $200

Cr. interest earned $200,

7 0
3 years ago
The operator of the local mall wants to find out how many of the mall's employees make purchases in the food court when they are
schepotkina [342]
The correct answer is "to survey <span>every 30th employee entering each mall entrance for one week".

Why is it considered to be the best method to get a random sample of the employees? The 30th employee, who enters the mall for the week is a random element and may work at different locations in the mall, which gives you a better random sample for the survey.</span>
3 0
2 years ago
Southland Company is preparing... Southland Company is preparing a cash budget for August. The company has $18,300 cash at the b
Alekssandra [29.7K]

Answer:

The Company must borrow $5400

Explanation:

To calcualte the amount rewquired to be borrowed, we first need to calculate the cash shortage from the minimum cash requirement.

The cash at the end of the August will be,

Cash at the end = 18300 + 123400 - 137100 = $4600

The minimum requirement is $10000.

The shortage of cash is = 10000 - 4600 = $5400

Thus, the Company must borrow $5400

7 0
3 years ago
Dahlia is explaining to her sister why a positive credit history is important. Which of the following should Dahlia give as reas
aleksandr82 [10.1K]

Answer:

in order to have finance from the bank for short term and long term.

Explanation:

when co. apply for the credit from the bank, the bank always check the credit history of the bank to issue loan to co.

7 0
3 years ago
Read 2 more answers
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