Video World owns and operates a national chain of video game arcades. Indicate whether Video World would evaluate each of the following as an investment center, a profit center (other than an investment center), or a cost center. Briefly explain the reason for your answer. An individual video arcade within a chain of video arcades. a. b. A snack bar within one of the company's arcades. A particular video game within one of the company's arcades. d. The security officers at each arcade location. с.

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Loanable Funds Theory

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curve. At the equilibrium point, demand for borrowings and demand for the issuance of borrowing funds are inextricably linked. This point of equilibrium should equalize demand and the supply of money available for borrowing.