Which of the following would1 the Qd of LF? Select one: O A. expected profit decreases. B. the real interest rate rises. O C. the real interest rate falls. D. the supply of loanable funds decreases. E. wealth increases.
Q: 7..Assume that we have a fixed supply of a depletable resource to allocate between two periods. Assu...
A: Bank rate, also known as discount rate in American English, is the rate of interest which a central ...
Q: Consider a ypothetical closed economy in which the marginal propensity to consume (MPC) is 0.8 and t...
A: Here, the marginal propensity to consume of the people of a closed economy is given as 0.8, and the ...
Q: Fill in the blanks: 1) MR > 0 implies demand is price ___________. 2) If Price elasticity is > -1 ...
A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the exac...
Q: the equation of exchange is given by M x V-PxQ, where M is the money supply, V is the velocity of mo...
A: The measure that depicts the final value of goods and services in an economy during a specified span...
Q: A monopolistʹs supply of a good is a.given by the portion of the monopolistʹs marginal cost curve t...
A: A monopoly is a market structure in which only one firm operates the market with no close substitute...
Q: If wages fall, then the short-run aggregate curve shifts to the
A: In an economy, wages refers to the amount of money earned by the people when they provide their effo...
Q: What if the information regarding market demand and market supply is conveyed in equations rather th...
A: Demand curve shows different combinations of price and quantity demanded and supply curve shows diff...
Q: Fill in the blanks using the number that corresponds to the correct word or phrase in the word bank ...
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question...
Q: In the Keynesian AS/AD framework, an increase in government spending would lead to ____ pricelevels ...
A: Equilibrium in the Keynesian AS/AD framework at the intersection of AD and AS curves.
Q: True or False: The majority of all United States bank liabilities are made up of sources other than ...
A: Liabilities means that a person or company is owing something , usually money. Deposit accounts ar...
Q: Suppose the economy of Canada is governed by the following consumption function, investment function...
A: Given information C=300+0.6(Y-T) I=700-80r G=500 T=500 Money demand=Y-200r Money supply=2 P=4
Q: erry spends $ 10 a month on pet dispensers and uperman action figures. His marginal- utility-to-pric...
A: Marginal Utility alludes to extra utility by virtue of the utilization of an extra unit of a product...
Q: Googol and Visagetext are two social media platforms. When Googol was launched, many reviewers claim...
A: Competition to dominates the market Even if the two market leaders have bene able to operate in the ...
Q: What is the law of diminishing returns and what does it imply about the shape of the firm’s average ...
A: Marginal Cost is the additional cost incurred in the production of one more unit of output.
Q: In the evolution of the state of despotic....what is the mode of production
A: Despotic state refers to when the individual holds all the power. In economics, it refers to when go...
Q: The Solow model with population growth predicts that_____ a. total income and total capital grow at...
A: The Solow model is an economic growth model that examines the change in the output level in an econo...
Q: Briefly define the steady state and show it in your diagram.
A:
Q: Assume at the level of output where MC=MR, a firm experiences TR = $40,000 per week, TFC = $100,000 ...
A: The Total Fixed Cost (TFC) is the summation of all the costs that do not vary with the level of outp...
Q: Consider the Swan-Solow model of economic growth. [Hint: Question (e) below goes beyond the subject...
A: The Solow–Swan model, sometimes known as the exogenous growth model, is a long-run economic growth m...
Q: When a firm buys a new computer increases, and when the firm gets rid of old computers d O investmen...
A: Computers are bought by the firm so they are not directly used by the end consumer but they are used...
Q: Subsidy granted to the hog raisers in Bgy. Silang Cavite by LGU Identify the statement above if ...
A: GOVERNMENT BANK In order to provide subsidies to the people and creating a farm subsidies, it is th...
Q: How Goods Market will be in Equilibrium according to the saving and investment approach? with a res...
A: In the mentioned question we have been asked that how equilibrium is attained with saving and invest...
Q: Using the above graph, The minimum level of output this firm would produce is 12 units. The ...
A: "Since you have posted a question with multiple subparts.We will solve first three subparts for you....
Q: Consider the following demand of tourists (T) and locals (L) for spots in a race: SQ" = 1,700 – 5p l...
A:
Q: I can't find anything to back up that a decrease in aggregate demand causes cost push inflation. My ...
A: Answer: Cost-push inflation: cost-push inflation is caused by an increase in the cost of wages and r...
Q: Read the following paragraph. Let Turkey be the domestic country. WHEN an emerging market loses fav...
A: Given information Turkey is under inflation pressure. Currency value in exchange market depreciates ...
Q: Consider a firm that enjoys economies of scale. • If this firm wants to produce 25% more output, it ...
A: In a market, economies of scale refers to the situation when a firm is experiencing an inverse conne...
Q: Why is Global citizenship and sustainability important? How would you promote Global Citizenship?
A: Globalization has doubtless helped developing economies. global citizenship means an awareness of th...
Q: Consider the following payoff matrix
A: Given, Two Players : A and BA has two strategies : U and DB has two stratgies : L and RPay-offs are...
Q: In a given town, demand for fish and supply of fish is given by P = 4976 - 6* Q and P = 2248 + 20 *Q...
A:
Q: Figure: Tax on Buyers 2 Price $10 9. 8. 7. 4 Dwith tex 0. 1 5 6 7 8 9 10 11 12 Quantity In the diagr...
A: The figure shows that the tax is imposed on buyers. The demand curve is shifted to the left. This im...
Q: Assume throughout that an individual's demand curve for doctors visits is represented by Q = 50 – P....
A: Market refers to the place where the buyers and sellers exchange goods and services in the market. I...
Q: A decrease in money supply growth will cause the: LRAS curve to shift to the left. AD curve to shift...
A: Answer -1 A drop in the money supply is accompanied by a corresponding decrease in nominal output, ...
Q: Recently, a certain bank offered a 5-year CD that eams 2.58% compounded continuously. Use the given ...
A: Given information: Principal amount (P): $10,000 Interest rate (r): 2.58% Compunding: continuously ...
Q: Given the assumptions of the law of diminishing marginal utility (exactly the same product consumed ...
A: Marginal utility (MU) is defined as the extra utility or benefit a consumer gets by consuming an ext...
Q: LRAS Price level SRAS, Pe Po P, AD2 ADo AD Real GDP per year Refer to the figure above. If the aggre...
A: Discretionary fiscal policy refers to the change in government expenditure and tax rates. The gover...
Q: What determines the slope of the Market Supply Curve over the long run? Discuss some reasons why it ...
A: The market supply bend/curve is an upward sloping bend portraying the positive connection between co...
Q: Figure: External Costs Price Social cost Supply E H Demand
A: Given that the diagram of external cost.
Q: a. What is the profit-maximizing output? Output: b. What price will the firm charge? Price: $ c. How...
A: In monopolistic competition, there are many firms with free entry and exit. Long run economic profit...
Q: (a) Complete the table of Vears Year since 2003 Salary (S) 2003 $39,800 2004 2005 2006 2007 (b) Find...
A: Exponential growth "It is a pattern of data that shows greater increase with passing time, creating ...
Q: What does a Rothschild Index score close to zero mean? The firm's product is very price sensitive. T...
A: The Rothschild index compares the elasticity of industrial demand for goods to the demand of a singl...
Q: Your company borrows $800,000 and will pay it back at 10% APR of real interest compounded monthly. T...
A: Amount borrowed = $800,000 Interest rate = 10% Adjustment for inflation would be 4% Payment would be...
Q: 5. Comerica's Balance Sheet information is given in the table below Assets Liabilities Reserves $75,...
A: Required reserve = r x deposit = 0.25 x 300,000 ...
Q: Jane is the general manager at a new café and wants to hire a few baristas. The going rate for baris...
A: Jane would generally pay $9.55 per hour as this is the price that is already prevailing in the marke...
Q: The IS relation means that the output increase leads to an interest rate decrease. TRUE or FALSE? ...
A: IS curve denotes the relationship between interest rate and output level in the economy.
Q: Roger's Lobsters serves buy-by-the-pound lobster dinners every Monday night. In order to attract cus...
A: Profit maximization is the means by which a firm determines the pricing, input, and production level...
Q: A firm has 60,000 shares whose current price is $62.57. These shareholders expect a return of 14%. T...
A: Total shares = 60,000 Price of share = $62.57 Return = 14% The firm has a 3-year loan of $1,900,000 ...
Q: 2) The first cost of a machine is $60,000. The machine's end of year salvage value over the next fiv...
A: PLEASE FIND THE ANSWER BELOW.
Q: When Alonzo had 3 years left in college, he took out a student loan for $13,564. The loan has an ann...
A: Interest is generally expressed as a percentage and may be simple or compounded.Simple interest is c...
Q: Explain all three Circular flow economic models in one structure. ?
A: An economic model is a simplified depiction of reality that enables economic action to be observed, ...
Step by step
Solved in 2 steps
- Suppose the market for loanable funds is currently in equilibrium. Which of the following factors will cause an increase in the interest rate? Select one: O a. An increase in the household saving rate O b. An expansionary monetary policy Oc. An increase in business confidence O d. A decrease in government budget deficits Travis buys a 20-year, $10,000 US Treasury bond with a coupon rate of 5%. After three years, he has some unexpected expenses and decides to sell the bond. In which market will Travis sell his bond? Select one: O a. The secondary bond market O b. The primary bond market O c. The Treasury bond market Od. The T-bond marketJ Assume that at the beginning of the year, you purchase an investment for $14,200 that pays $95 annual income. Also assume the investment's value has increased to $15,800 by the end of the year. a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places. Rate of return b. Is the rate of return a positive or a negative number? O Positive O NegativeCompound interest means: Select one: a. That the interest is fixed regardless of unrecovered balance O b. Regular nominal interest rate. O c. That a given interest rate has no impact on the growth of principal. d. That the interest is earned on interest.
- There is a negative relationship between planned investment and the interest rate because... Select one: O a. none of the options O b. the interest rate affects the cost of investment projects O c. the risk affects the return on investment projects O d. the interest rate affects the income tax of investment projectsA bond has a face value of $30,000 and matures after 8 years. Five offers were submitted for the purchase of the bond as follows: offer 1 = $25,800; offer 2 = $23,100; offer 3 = $26,450; offer 4 = $22,050; and offer 5 = $25,550. Which offer will yield the highest return on investment? O a. Offer 2 O b. Offer 3 O c. Offer 1 O d. Offer 4 O e. Offer 5Analyze the impacts of the economy entering a time of expansion (i.e. "good times") on the market for loanble funds. (Assume that expectations about the future don't change.) Because of the expansion, equilibrium interest rates will and the equilibrium quantity of loanable funds will O decrease ; rise, fall, or not change (ambiguous effect) O increase ; decrease O increase ; rise, fall, or not change (ambiguous effect) rise, fall, or not change (ambiguous effect) ; increase O rise, fall, or not change (ambiguous effect) ; decrease
- The demand D (in billions of £) for a bond with coupon rate 5% and face value FV = 1000, andtwo years to maturity as a function of its price P is D = 4000 − 2P. The supply in (billions of£) as a function of the price of the bond is S = 2P + 400. b) Suppose that the yield to maturity of the bond is i = 0.05. What is the quantitydemanded/supplied at this interest rate? What happens to the demand/supply of the bond asthe interest rate increases? Explain why. c) What is the equilibrium interest rate? d) Suppose that the bond trades at premium. Is there excess demand or supply? Explain.e) There is a business cycle expansion, so both supply and demand shifts. After the shift, thenew demand curve is given by: D = 4000 + X − 2P, whereas the new supply curve is S =2P + 200. For which values of X will the interest increase/decrease? Which values of X arein line with empirical data?The consumer views present and future consumption as perfect complements and would like to consume equal amounts in both periods, i.e., . Suppose, however, that there is a credit market imperfection that prevents this consumer from borrowing at all, i.e., . a. Show the consumer's lifetime budget constraint and indifference curves on a diagram. Note that because the consumer prefers to purchase present and future consumption in equal amounts, the indifference curves will be kinked at. Note also that because the consumer cannot borrow, the budget constraint will be kinked at the consumer's initial endowment. Recall that the budget constraint is given by: Recall also that the consumer's endowment for each period can be expressed as: b. Calculate the consumer's optimal current-period and future-period consumption and optimal saving and show this in your diagram. Does the existence of the credit market imperfection affect the consumer's choices? Recall that savings is given by: c. Suppose…The demand D (in billions of £) for a bond with coupon rate 5% and face value FV = 1000, andtwo years to maturity as a function of its price P is D = 4000 − 2P. The supply in (billions of£) as a function of the price of the bond is S = 2P + 400. b) Suppose that the yield to maturity of the bond is i = 0.05. What is the quantitydemanded/supplied at this interest rate? What happens to the demand/supply of the bond asthe interest rate increases? Explain why. c) What is the equilibrium interest rate?
- The general case of interest rate is simple interest rate. Select one: O True O Falsea) Suppose you put $350 into a bank account today. Interest is paid annually and the annual interest rate is 6 percent. What is the future value of the $350 after 4 years? b) Suppose you are deciding whether to buy a particular bond from your local municipality. If you buy the bond and hold it for 4 years, then at that time you will receive a payment of $10,000. Assume the interest rateis6percent. Underwhatcircumstanceswillyoubuythebond?Meaninguptowhatpriceareyou willing to pay.Question 1 Not yet answered Points out of 1.00 P Flag question Holding other factors constant, if employers automatically enroll employees in retirement savings programs in order to overcome psychological barriers to saving, then the real interest rate will and the equilibrium quantity of saving and investment will, Select one: O a. decrease; increase O b. increase; not change Oc. increase; increase O d. increase; decrease
