Please use the graph to answer the given questions. Assume the people act rationally.
1. Which of the statements best describes a situation represented by point A?
a. Wayne projects that if he takes out a loan to open another gym franchise, he will earn a lower return than the interest rate he would have to pay, so he decides against it.
b. Jeff agrees to lend money to his brother, who plans to use the funds to open a shoe store.
c. Janine predicts that, if she borrows to expand operations, she will earn a rate of profit higher than the interest rate of the loan. So, she decides to take out the loan.
d. Carly decides against purchasing a corporate bond because she has another investment opportunity that returns 14%.
2. Given the market conditions, what will be the prevailing interest rate?
a. 14%
b. 2%
c. 18%
d. 6%
e. 10%
3. Given the market conditions, how much will be available in loanable funds?
a. $70 billion
b. $10 billion
c. $90 billion
d. $30 billion
e. $50 billion
Answers
Answer:
a. Wayne projects that if he takes out a loan to open another gym franchise, he will earn a lower return than the interest rate he would have to pay, so he decides against it.
e. 10%
e. $50 billion
Explanation:
Point A represents a situation in which projects that promise a rate of return lower than the prevailing interest rate will not be funded.
Since Wayne's expansion of his gym franchise promises a return which is lower than the interest rate he would have to pay, he will not choose to expand. This scenario aligns with point A. Each of the three remaining scenarios also correspond to a quadrant on the graph.
Janine decides to take out a loan and expand because she projects a rate of return higher than the interest rate, represented by the demand curve above equilibrium (the upper left).
Jeff providing a loan to his brother indicates that the expected return is higher than the interest rate the brother will be paying Jeff. Jeff's situation is represented by the supply curve below equilibrium (the lower left). Recall that for supply/demand graphs, the area below the demand curve and above the supply curve to the left of the equilibrium point is total surplus because exchanges are being made between the buyers and sellers.
Lastly, Carly deciding whether or not to purchase a corporate bond is equivalent to her deciding whether or not to provide a loan to the corporation issuing the bond. Her decision not to buy is due to her unwillingness to accept an interest rate below 14%, and thus she is represented by the supply curve above equilibrium (the upper right).
The market for loanable funds operates much as a normal supply and demand model, with the interest rate on the vertical axis (the price of borrowing) and quantity of loanable funds on the horizontal axis. In order to determine the market interest rate and quantity of available loanable funds, you must find the equilibrium point for the market supply and demand curves. Using the information presented in the graph, you can see that the prevailing market interest rate is 10% and there are $50 billion in loans made.
1. a. Wayne projects that if he takes a loan to open another gym franchise, he will earn lower return than the interest rate he would have to pay, he decides against it.
2. e. 10%
3. e. $50 billion
What is the situation represented by the graph?Projects that guarantee a return that is less than the going interest rate won't be funded, as shown by Point A.
Wayne won't decide to expand his gym chain since the return it promised is less than the loan rate he would have to pay. This situation fits point A. The graph's remaining three situations are similarly each represented by a quadrant.
Because Janine anticipates a rate of return greater than the interest rate, which is indicated by the demand curve above equilibrium, she decides to take out a loan and grow (the upper left).
The market for loanable funds functions similarly to a standard supply and demand model, with the quantity of loanable funds on the horizontal axis and the interest rate on the vertical axis (the cost of borrowing). You must locate the equilibrium point for the market supply and demand curves in order to ascertain the market interest rate and the amount of loanable funds that are readily available.
You can see from the graph's data that there are $50 billion in loans made and a market interest rate of 10% is currently in effect.
Hence, the appropriate responses are option a, option e, option e respectively.
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Related Questions
Write advantages of population in 6 points..
Answers
Answer: Having a larger population can help run a better and more stabilized government. They can have more votes and more points to prove to their cause. The economy works better, like there's more people to do more work. There is more of a fighting force. Like more people to draft to a military or otherwise forceful group. There is a higher demand in industries of certain types that more people would help.
Explanation:
Explanation:
Refers to any process that aims at describing phenomena by using any instrument or device however the results may be used as a control tool.
why should you be aiming to achieve a bachelors pass regardless of what you plan?
Answers
Because it is always a clever idea to have a backup plan. You can go to university with a bachelor's degree.
I hope this helps you
:)
2 poin
QUESTION 18
Rick devotes all his energy to school. He sets high standards of performance for himself in an effort to accomplish all he can. According to
research on motivation, Rick could be said to have a high need for
O A. Success
OB. Recognition
OC. Academics
O D. Achievement
Answers
Rick's hunger to accomplish all that he can by setting high standards for his performance, probably means that he has a high need for D. Achievement.
What does Rick have a high need for?When a person has a high need for achievement, they will devote as much time and energy as they can to their various ventures.
Rick in this case, has a high need for achievement because he is giving all his time and energy to school so that he may accomplish his goals.
In conclusion, option D is correct.
Find out more on motivational needs at https://brainly.com/question/5517160.
One of the influences associated with the development of borderline personality disorder is Group of answer choices deficits in neurotransmitter circuits involving dopamine. parental alcoholism. history of child abuse or neglect. developmental delay for major milestones (i.e., walking, talking).
Answers
One of the influences associated with the development of borderline personality disorder is a history of child abuse or neglect.
What is a Personality Disorder?This refers to those psychological disorder where the individual has an unhealthy pattern of thinking and behavior.
Hence, based on a recent study, it was found that there was a link between individuals who had borderline personality disorder as also having childhood abuse or trauma.
Read more about borderline personality disorder here:
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Select the correct answer. Which statement best describes the effect of tone on the reader? A. The tone helps the reader make an informed decision about a subject. B. The tone helps the reader interpret the structural plot path of a text. C. The tone helps the reader interpret an author's attitude on a subject. D. The tone helps the reader learn details about an author's background.
Answers
Answer:
The correct answer is C
Explanation:
the tone helps the reader interpret an author's attitude on a subject
Answer:
The tone helps the reader interpret an author's attitude on a subject.
Explanation:
got it right on edmentum test, hope it helps and have a good day :)
Every modern nation uses a central
bank. Which of the following is NOT an
example of a central bank?
A. Royal Bank of Japan
B. Bank of Canada
C. Bank of Mexico
Answers
Answer: A. Royal Bank of Japan
Explanation: Note that the word "Royal" is used. In the other two, there are no words like Royal, and only have the countries name and states that their a bank. Most central banks are like that. I hope this helps.
PLS HELP FAST!!!
What do you think about suppressing certain evidence because it has been obtained illegally? How does it relate to the Constitutional right to due process? Explain your point of view fully, giving examples to back yourself up.
Answers
Suppressing certain evidence because it has been obtained illegally isn't ideal as the "exclusionary rule" can be practised.
What is Evidence?This is defined as any information used in the court of law to prove something. The Fourth Amendment to the U.S. Constitution prohibits law enforcement officers from conducting unreasonable searches and seizures.
They must have a valid warrant or probable cause which when violated the "exclusionary rule" comes into play.
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What is the main difference between a "root word" and a "root" word?
Answers
Answer:
Base Word is a morpheme from which words have been created by the addition of prefixes or suffixes. Root word is the part of the base word that comes from another language.
Individual Meaning
Base word can stand alone. Root word cannot often stand alone.
Explanation:
cuz it is ..... ur welcome
Pandangan individu terhadap isu pembuangan bayi
Answers
Following World War 2, why did nations create alliances like NATO around the globe? A. Communist and democratic nations did not trust each other. B. Nations began another world conflict that included fighting. C. Communist and democratic nations worked together for world peace.
D. Many nations wanted to gain economic independence.
Answers
Answer:
D. many nations wanted to gain economic independence
Classify each example as either relating to human capital, physical capital, or technology.
- An increase in adult literacy affects
- An increase in the number of company cars impacts
- An increase in the number of college graduates impacts
- New distribution techniques affect
- An increase in the number of company computers affects
- More people graduating from culinary school affects
- A new cancer treatment affects
- A doctor's knowledge about a new cancer treatment affects
WORD BANK
physical capital.
human capital.
technology.
Answers
Answer:
1. human capital.
2. physical capital.
3. human capital.
4. technology.
5. physical capital.
6. human capital.
7. technology.
8. human capital.
Explanation:
Human capital refers to the knowledge, skills, experiences, capabilities acquired by an individual inorder to the productivity. Physical capital refers to those inputs that contribute in the production process. It basically means the factors of production like land, building, machinery, etc. Technology refers to research, innovations and development. In other words, it means innovating something new.
Human capital is the knowledge and ability that workers have that allow them to perform their job or to perform it better. Some examples of human capital are the knowledge obtained through various types of education and training as in the case of more college graduates, individuals going to culinary school, adult literacy, and doctors learning about a new way to treat cancer.
Physical capital consists of those physical resources that are used in production but that are not inputs in production. Examples of these are company computers and company cars that presumably enhance workers' ability to perform their tasks.
Technology consists of the processes by which capital is employed in the production process. For example, improvements in a distribution process or in cancer treatments are both examples of technologies.
whats the definition of isthmus
Answers
Answer:
a narrow strip of land with sea on either side, forming a link between two larger areas of land.
Anatomy: a narrow organ, passage, or piece of tissue connecting two larger parts.
Which of the following statements is true about water access in the Middle East?
A. Access to coastal waters is not important to people.
B. Most countries depend on outside resources for water.
C. Water is available in large supplies in all countries.
D. All countries have sources of renewable freshwater
Answers
Answer:
B hope this helps you
Explanation:
Answer:
B
Explanation:
Describe a situation in which informal learning in a school setting might influence a person's political opinions .
Answers
Answer:
A situation in which informal learning in a school setting might influence a person's political opinions is the teacher letting you watch any video you want online about a political subject, and before they let you begin they mention a specific political issue they feel strongly positive or negative towards, expressing a clear bias that might cause you interest in the subject and make you decide to watch content related to the topic which ends up influencing how you feel about it. I hope this works!
Explanation:
Which of the following statements is true of criminal behaviors by adolescents?
a. Running away from home is a serious act of juvenile delinquency and not a status offense.
b. Robbery is categorized as a status offense by the laws governing juvenile delinquency.
c. Girls are much more likely than boys to engage in delinquent behavior such as robbery.
d. Criminal behaviors show a dramatic increase in many societies during adolescence and then taper off during adulthood
Answers
The only criminal behaviors by adolescents which is true from the above options is: robbery is categorized as a status offense by the laws governing juvenile delinquency.
However, robbery is a high level criminal offense in all nations under the earth.
The religious institutions too spoke against this immoral actIn the legal institution, robbery is categorized as a status offense by the laws governing juvenile delinquency.What is juvenile delinquency?Juvenile delinquency can be defined as as those offenses considered as criminal behaviors or acts by individuals between the ages of 7 and 19
This however; is usually, frequently and most of the times caused by
Child maltreatmentPoor parental controlImmoral upbringingHome discordsLearn more about juvenile punishment:
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What items does the United States often export to other countries? •
-helicopters and airplanes
-chocolate and coffee
- rice and pineapples
-electronics and coffee
Answers
The items that United States often export to other countries includes:
helicopters and airplaneschocolate and coffeeelectronics and coffeeWhat is an Export good?These are goods that are produced for exportation to another country.
The exportation of goods is a good sign that an economy is performing well because its increase the economy Gross Domestic Product.
Therefore, the Option A, B and D is correct.
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Answer:
Helicopters and airplanes
Explanation:
I did the test.
what is the most serious threat to biodiversity
Answers
Answer: Climate change was ranked as a 6% risk to Earth's biodiversity. WWF's Living Planet Report 2020 has ranked the biggest threats to Earth's biodiversity. The list includes climate change, changes in land and sea use and pollution. The WWF used data from over 4,000 different species.
Explanation:
I hope that that’s the answer you were looking for
please help this is kinda simple but need help.
Answers
Answer:
A Grow and develop
C are made of many cells
E can reproduce
Explanation:
Collaboration with Congress during the Clinton administration allowed for an aggressive deficit‑cutting plan to pass. At the end of the 1990s, Congress eliminated the government deficit. Manipulate the graph to illustrate how the elimination of the deficit affects the loanable funds market.
What does the model predict will happen to the quantity of private investment as a result of elimination of the government deficit? Private investment will _________.
a. decrease because the cost of borrowing decreases.
b. increase because the cost of borrowing increases.
c. decrease because the cost of borrowing increases.
d. increase because the cost of borrowing decreases.
Answers
Answer:
d. increase because the cost of borrowing decreases.
Explanation:
A government deficit means that tax collections amount to less than government spending during a fiscal year. This difference is covered through government's public debt, reducing national savings. So, when the U.S. government reduces its borrowing, it increases national savings and the supply of loanable funds in the U.S. market.
Thus, the supply for financial capital shifts to the right, allowing private market participants to borrow at a lower interest rate. The lower cost of funds means that participants can finance private investment at a lower cost, increasing the amount of private investment.
Select all the correct answers.
What are two reasons why the US government sent expeditions into the Louisiana Territory in the 1800s?
The government wanted to learn about the strength of the French military in the area.
A: At that time, many Americans traveled there to search for gold and precious stones.
B: At that time, Americans knew very little about the geography of the area.
C: The government wanted to establish friendly ties with American Indians there.
D: The government wanted to prepare for a coming war against Great Britain.
Answers
Answer:
B. I do not know the second one
Explanation:
it makes sense that americans knew very little about the area at the time since they had just bought the territory
Factors of production can be increased
or decreased through means of
quantity or quality. Which action is an
increase in the QUALITY of Capital?
A. education
B. research and development
C. purchase of equipment
Answers
The quality of capital per worker is a measure of how much capital there is in the economy and how good that capital is.
Which phrase best describes the ottoman Empire
Answers
Answer:
C. A turkish islamic kingdom that defeated the Byzantine empire
Explanation:
Including the full list of answers,
Which phrase best describes the Ottoman Empire?
A. A Persian Islamic kingdom that fought the Turks
B. An Indian Islamic kingdom that was tolerant toward Hindus
C. A Turkish Islamic kingdom that defeated the Byzantine empire
D. A mongol Islamic kingdom that conquered most of China
C is the answer
Why do consumers have to make choices when spending their income
Answers
Answer:
They have to make choices because:
Generally, consumers are trying to get the most for their limited budget so must make wise choices to get the most out of their income.To be able to get the best-quality goods to suit their preference when buying.To avoid impulse buying.To avoid wastage of money due to impulse buying & improper planning.To get maximum number of items when buying,despite price increase.This is a massive ball of plasma that shines because of thermonuclear fusion
Answers
Answer:
star
Explanation:
huge ball of ionized gas (plasma) producing energy (light) by nuclear fusion. The visible surface of the sun (photosphere) is ~5700K. An object at this temperature emits most of its. energy as visible light
webpdxedu
What factors led to a general decrease
in the length of residence requirements among the
States?
Answers
Explanation:
AbstractBACKGROUND:-cardio metabolic risk (CMR) factors including hypertension overweight obesity diabetes mellitus and hyperlipidemiaaa raha hai among United States ethnic minorities and the immigrantpopulation continuous to burgeon.
hope u help ful
Cardio Metabolic Risk (CMR) factors, such as hypertension, overweight obesity, diabetes, and hyperlipidemia, continue to rise among American ethnic minorities and immigrants.
What is Cardio-Metabolic Risk (CMR)?There are a number of risk variables that operate as predictors of someone's propensity to acquire diabetes or cardiovascular disease (CVD). Finding these risk factors is especially crucial because many of the disorders that lead to diabetes and cardiovascular disease may be treated or lessened. These cardiometabolic risk factors (CRF) include prediabetes, high blood pressure, raised triglycerides, low HDL (good) cholesterol, and low HDL (good) cholesterol levels.
Risk factors for thrombosis include irregular blood clotting, abdominal obesity, and thrombosis. Blood testing and physical examinations are used to evaluate a person's cardiometabolic risk. Blood tests are specifically used to monitor a person's glycemic control, lipid profile, and vascular health.
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Suppose that the policy-makers of a foreign country decide to enact policy that reduces unemployment (at the expense of higher prices) just before an election. At the time of the election, however, the reduction in unemployment is much greater than expected, and the pesky inflation increase never occurs.
The graph illustrates the economy before the government attempts to reduce unemployment. Change the graph to illustrate changes in the economy that could result in lower unemployment without an increase in prices.
Note that LRAS represents long-run aggregate supply, SRAS represents short-run aggregate supply, and AD represents aggregate demand.
Answers
Answer:
*see image*
Explanation:
The tool available to the policy-makers that would have resulted in a (short-run) decrease in the unemployment rate is an increase in aggregate demand.
Had nothing unexpected happened, unemployment would have fallen in the short run, and the price level would have risen in both the short and long run. However, that bump in inflation never happened, and a greater-than-expected fall in the unemployment rate occurred. The only unexpected shift that could have caused this is a rise in SRAS.
The SRAS curve shift alone would have resulted in lower (short-run) unemployment and less inflation than would have occurred otherwise (or possibly even deflation). An AD shift of the right size, occurring at the same time as the SRAS shift, would have resulted in no change in the inflation rate and even less unemployment. Depending on the relative sizes of the SRAS and AD shifts, an unexpected fall in AD paired with the increase in SRAS could have led to this result as well.
Mohandas Gandhi helped India win independence through __________.
a: fighting
b: communism
c: nonviolent protests
d: industrialization
Answers
Answer:
non- violent protests
Explanation:
gandhi ji come india and start satyagrah against British and he want to democratic country as india
What laws helped the Colony to grow and why?
Answers
The Colonial Population
Explanation:
These populations continued to grow at a rapid rate throughout the 18th century primarily because of high birth rates and relatively low death rates. Over 90% were farmers, with several small cities that were also seaports linking the colonial economy to the larger British Empire.
What was South American‘s influence on the World Cup?
Answers
Answer:
South America's influence on the world cup is that most popular countries in the world cup are in south America (Argentina,Brazil, Uruguay) Also a big portion of viewers of the world cup are from south America.
were the plebeians successful in addressing inequality in the Roman republic
Answers
Answer:
the plebeians were allowed to elect their own government officials. They elected "tribunes" who represented the plebeians and fought for their rights. They had the power to veto new laws from the Roman senate. As time went on, there became few legal differences between the plebeians and the patricians.
Explanation:
I hope this helps pls let me know if i am wrong <333
