Suppose you feel the economy is just entering recession. Your firm must raise capital immediately and Dept will be uses .should you borrow in long-term basis or long term?

Q: The central bank is selling $100 worth of bonds payable in one year. The price it gets today is $98.…

A: Do you understand what the "implied interest rate" is? The implicit interest rate in a commercial…

Q: True or False: Americans save more money now than they ever have. O True O False

A: With the prevalence of the pandemic in the background of 2020-2021, the consumer spending in the USA…

Q: If you are a banker and expect interest rates to rise inthe future, would you prefer to make…

A: Interest is the cost of capital. We can use interest in the context of either borrowed funds (or…

Q: Qlb. Consider two companies manufacturing tablets. One relies on workers on an assembly line and…

A: Recession:- Whenever there is a significant fall in business activity, there seems to be a…

Q: What is the economic problem? a. less profit Ob. liquidity Oc. Scarcity O d. unlimited resources

A: Economics aims to allocate the resources in such a manner so that the most efficient outcome is…

Q: Why do you think the real interest rate was low during the recession in the mid-1970s and during the…

A: In the recession, the economic activities such as production and spending starts falling, the…

Q: If you save $1,000 and the interest rate is 7%, appoximately how long does it take to double that…

A: The rule of 70 To determine the number of years it will take for investment or money to double, when…

Q: how do businesses adapt to periods of contraction and expansion?

A: The expansion period is referred to as the development period, takes place as the economy expands…

Q: What are the financial markets? What are the parties of the capital market?Explain it.

A: For the smooth operation of a capitalistic system, entrepreneurs and businesses rely on finance that…

Q: What is the Sinking-Fund Factor?

A: The sinking fund factor is the calculation that tells the investor how much of an annuity payment…

Q: If the interest rate is 8%, how much households and firms will want to borrow?

A: The households and firms that want to borrow imply the demand for funds in the market. Thus we will…

Q: The cost of money is established and measured by an interest rate. True or false?

A: Answer - Cost of Money -  Cost of the money is amount of interest can be charged on the money…

Q: Potential output is the most that can be produced in an economy at a particular point in time.…

A: Potential output is the highest level of output, an economy can sustainably produce and sell using…

Q: The supply of bonds comes from Select one: O A. Savers OB. Borrowers O C. Financial Intermediaries O…

A: A loan given by an investor to a borrower for a certain amount of time in exchange for consistent…

Q: High interest rates might purchasing a house, but at the same time high interest rates might -…

A: Interest rate is that percentage of the principal- amount borrowed or deposited, which the lender…

Q: How do mal-investments wreck the economy?

A: It is very important that investments are made properly in the economy. With proper…

Q: If interest rates in the economy are high, then a firm would use a MARR higher than current interest…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: Why do you think the real interest rate was low during the recession in the mid-1970s and during the…

A: The GD {great depression} is described as the situation of the downturn of the economy which has…

Q: omy personal affect finance?

A: It can be said that finance is in turn being derived from economics as it involves the assessment of…

Q: What job did online banking destroy? What jobs did it create ? How might artificial intelligence…

A: With the advent of online banking, it is seen that there has been changes in the composition of…

Q: what is the 4 factor that affects the level of interest rate? and how does each one work?

A: The cost of lending money is represented by an interest rate. On the other hand, it is a reward for…

Q: Suppose you've just inherited $10,000 from a relative. You're trying to decide whether to put the…

A: The value of what you lose when you have to choose between two or more alternatives is known as…

Q: What are some drivers for companies to engage in the circular economy?

A: There are some drivers for companies to engage in the circular economy:- when companies start…

Q: What is the financial market, what does it do in terms of saving investment and interest rates

A: A market is a place where the exchange of goods and services takes place between the consumers and…

Q: If mortgage rates fell to 0 percent ("free money"), why might consumers still hesitate to borrow…

A: In general, the term mortgage rates refer to the interest rate charged by the financial institution…

Q: Explain with an example that money has time value?

A: Time value of money talks about the difference between the amount of money  one has today and the…

Q: Why is it important to begin saving for the future at a young age? o to make it so you can blow all…

A: Savings is that part of income which is not consumed and kept aside for use in the future.

Q: Suppose you are in charge of the financial departmentof your company and you have to decide whether…

A: Because government is making plans to invest/spend on infrastructure, which is anticipated to push…

Q: What is effective disposable income?

A: Effective Disposable income is the net income available to the consumer after income taxes.…

Q: How does the NAIBER work and why is it considered an alternative to the NAIRU?

A: The measure that depicts the people who are capable and able to work to find a job but are not able…

Q: long run on consumption, savings, investment,

A: Y= F(K,L)   where K=K  and L= L impling K capital and Labour L are taken to be constant.…

Q: Potential output is the most that can be produced in an economy at a particular point in time.…

A: Hey, Thank you for the question. According to our policy, we can only answer 1 question per session.…

Q: Describe the secondary benefits?

A: There are two different types of benefits to the employees and they are the primary and secondary…

Q: What do economists mean by the "time value of money"? A. The way that the value of a payment changes…

A: "Money is widely acknowledged as a means of economic exchange. It is the way through which the…

Q: It can be agreed that aligning the incentives of the agent with those of the principal can lead to…

A: The principal-agent relationship is widely used at the marketplace when the interest of both the…

Q: Express the term benefits and costs in monetary units?

A: Benefits and costs in monetary units are those costs and benefits of any investment or projects…

Q: Buying a Home - Personal Notes Scenario: You are getting a loan to buy your first home. It is a…

A: The question is based on Money demand and supply market. Supply in money market is fixed and is…

Q: . What is the amount of economic investment that has resulted from BBQ's actions? $ million . How…

A: Here the restaurant chain build 20 new restaurants.

Q: Money has a time value because it can earn more money over time.alse?

A: Answer - Need to find - Statement is true of false  Money has a time value because it can earn more…

Q: Q5.Amir Khan has a savings bank account in HDFC bank, some days back he had a meeting with one…

A: Amir Khan has a savings bank account in HDFC bank, some days back he had a meeting with one…

Q: Economic and management sciences were effect on accounting theory, explain some of these effects and…

A: Economic and management sciences involved cost theories and other accounting related theories. For…

Q: What is the relationship between nominal and effective interest rates?

A: The interest rates refer to the rate at which the loans are given by the banks, or other lending…