Question

The following graph shows the supply of and demand for capital in a market over the last year. You can see that the demand foThe market interest rate increased by 2.0%, and the amount of capital borrowed by billion. Which of the following factors couoptions for drop down 1: decreased or increased

options for drop down 2: $3.0, $2.0, $0.5, $2.5

0 1
Add a comment Improve this question Transcribed image text
Answer #1

Answer 1) the amount of borrowed indicate demand side in graph , which has inverse relation with interest rate.

a. DECREASE b. $ 2,0

Answer 2) As change in demand has direct relation with interest rate , federal reserve policy and  Inflation may directly impact nominal interest rate in market. But inflation has more impact in comparison to fed policy .

OPTION D: Expected inflation decrease

Answer 3) Increase in demand side indicate about strength in economy .

OPTION B : Strengthened

Answer d) real rate = nominal rate - Inflation = 6.8-3=3.8%

Add a comment
Know the answer?
Add Answer to:
options for drop down 1: decreased or increased options for drop down 2: $3.0, $2.0, $0.5,...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • first & third drop down options: Graph 1 / Graph 2 second and fourth drop down...

    first & third drop down options: Graph 1 / Graph 2 second and fourth drop down options: buyers / sellers Consider the market for rubber bands. The following graphs give two different examples of possible demand and supply curves in this market. Use the graphs to help you answer the following questions. You will not be graded on any changes you make to these graphs. Graph 1 Demand Tax Wedge Supply Area Price of Rubber Bands 0 90 100 10...

  • drop down 1 options: 1.50%, 2.03%, 1.27%, or 1.80% drop down 2 options: 3.73%, 2.15%, 3.30%,...

    drop down 1 options: 1.50%, 2.03%, 1.27%, or 1.80% drop down 2 options: 3.73%, 2.15%, 3.30%, 4.09% drop down 3 options: 2.63%, 2.34%, 1.66%, 1.95% Remember, the expected value of a probability distribution is a statistical measure of the average (mean) value expected to occur during all possible circumstances. To compute an asset's expected return under a range of possible circumstances (or states of nature), multiply the anticipated return expected to result during each state of nature by its probability...

  • drop down 1 options: 1.42, 1.55, 1.48, 1.37, 1.62 drop down 2 options: 2.74, 2.93, 2.56,...

    drop down 1 options: 1.42, 1.55, 1.48, 1.37, 1.62 drop down 2 options: 2.74, 2.93, 2.56, 2.39, 2.12, 1.98, 2.23 drop down 3 options: 3.69, 4.00, 3.79, 3.54, 3.45, 3.60, 3.89 Praxis Corp. forecasts the following income statement for the next year: Income Statement For the Year Ended on December 31 Net sales $960,000 Less: Variable costs Less: Fixed costs 532,000 163,000 EBIT, or NOI $265,000 Less: Interest 146,000 EBT $119,000 47,600 Less: Taxes Net income $71,400 Praxis Corp. uses...

  • drop down 1 options- •open ended • close ended drop down 2 options- •is •is not...

    drop down 1 options- •open ended • close ended drop down 2 options- •is •is not drop down 3 options- •are •are not 2. Understanding the difference between open-end and closed-end funds Categorizing Mutual Funds For each of the following statements regarding mutual funds, indicate whether it is true of open-end, closed-end, or both open- and closed-end funds. Open-End Funds Closed-End Funds Shares in this type of fund are always publicly traded. These funds issue new shares in response to...

  • Suppose the Federal Reserve (the Fed) decides to tighten credit by contracting the money supply. Use...

    Suppose the Federal Reserve (the Fed) decides to tighten credit by contracting the money supply. Use the following graph by moving the black X to show what happens to the equilibrium level of borrowing and the new equilibrium interest rate. 16 TO S2 S1 Equilibrium INTEREST RATE, (Percent) CAPITAL (Billions of dollars) Which tend to be more volatile, short- or long-term interest rates? O Short-term interest rates Long-term interest rates If the inflation rate was 3.40% and the nominal interest...

  • drop down option the same for all questions Which tend to be more volatile, short- or...

    drop down option the same for all questions Which tend to be more volatile, short- or long-term interest rates? Long-term interest rates Short-term interest rates If the inflation rate was 2.60% and the nominal interest rate was 6.00% over the last year, what was the real rate of interest over the last year? Disregard cross-product terms; that is, if averaging is required, use the arithmetic average. O 3.40% 3.91% 2.89% 4.25% Component Symbol Characteristic This is the rate for a...

  • 1st drop down options: $47.89, $28.77, $45.71, $51.31 2nd drop down options: 5.13%, 7.02%, 7.70%, 7.35%...

    1st drop down options: $47.89, $28.77, $45.71, $51.31 2nd drop down options: 5.13%, 7.02%, 7.70%, 7.35% 3rd drop down options: $47.89, $30.12, $50.20, $45.71 4th drop down options: 104.82%, 4.82%, 5.78%, 4.34% Super Carpeting Inc. just paid a dividend (D) of $3.36, and its dividend is expected to grow at a constant rate (g) of 4.90% per year. If the required return (rs) on Super's stock is 12.25%, then the intrinsic, or theoretical market, value of Super's shares is per...

  • drop down 1 options: might or well drop down 2 options: is obligated or would like...

    drop down 1 options: might or well drop down 2 options: is obligated or would like drop down 3 options: exceed, be less than, equal drop down 4 options: at a discount, at par, at a premium A. Variable drop down: Bond's semiannual coupon payment, Bond's annual coupon payment, Bondholder's required return A. Variable Value drop down: 35.00, 56,.00, 112.00, 140.00 B Variable Name drop down: Bond's Market Price, Bond's annual coupon payment, Bond's par value C. Variable Value drop...

  • drop down 1 options: 0.70%, 0.58%, 0.74%, 0.64% drop down 2 options: 10.95%, 9.31%, 8.21%, 8.76%...

    drop down 1 options: 0.70%, 0.58%, 0.74%, 0.64% drop down 2 options: 10.95%, 9.31%, 8.21%, 8.76% drop down 3 options: 9.48%, 11.06%, 10.53%, 10.00% The weighted average cost of capital (WACC) is used as the discount rate to evaluate various capital budgeting projects. However, it is important to realize that the WACC is an appropriate discount rate only for a project of average risk. Consider the case of Turnbull Company. Turnbull Company has a target capital structure of 58% debt,...

  • Starting from the top drop down questions: 1. Fall / rise 2. 18% / 12% /...

    Starting from the top drop down questions: 1. Fall / rise 2. 18% / 12% / 3% / 9% / 6% / 15 % 3. increase / decrease 4. up / down 5. more / less 6. an increase / no change / a decrease 7. an increase / no change / a decrease 8. an increase / no change / a decrease 3. The Keynesian transmission mechanism Suppose the Federal Reserve shifts to an expansionary monetary policy by buying...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT