Explain why there is a negative relationship between interest rate and quantity demand of capital And why there is a positive relationship between interest rate and quantity supply of capital.

Q: markets to show how the change in A affects the supply of capital, the supply of labor, the real…

A: Answer:-As per rule of economy when demand increases the supply and its consumption also increase.…

Q: If and when the demand of loanable funds shifts to the left: Group of answer choices 1. This is…

A: In the market for loanable funds, the equilibrium is achieved at the intersection of demand for…

Q: If you are a banker, should you consider the nominal or real interest rate when deciding which rate…

A: Nominal Interest rates :  It refers to that cost of capital which a borrower has to pay and a lender…

Q: What is Paid-in capital?

A: In exchange for stock, the shareholder gives a full amount of cash or asset to the company is known…

Q: Is there really a problem that needs to be addressed regarding the imbalance between wealthy…

A: For centuries we have been living and following this trend in the society in which there exists both…

Q: of the following will cause a shift in the demand curve for capital EXCEPT:     A change in sales…

A: Demand Curve For Capital: The curve that shows the negative relationship between the interest rate…

Q: Suppose that the government changes the tax code to allow additional amounts of money to be placed…

A: Change in tax code leads to increase in supply of loanable fund in the market, thus the supply curve…

Q: The only kind of interest rate that can be used in the interest formulas is: (EXPLAIN YOUR ANSWER) A…

A: In a market for loanable funds and securities, a lender receives interest rate and a borrower pays…

Q: Explain the term capital in depth

A: Companies employ capital to fund the continuous production of goods and services in order to…

Q: What are the two components of the user cost of capital? Use an example capital good to explain.

A: The capital is the asset which is used to produce other goods or make the production easier. It is…

Q: "Capital is a flow and income is a stock" True/False

A: # If a quantity is being measured at a perticular point of time then it is stock and if a quantity…

Q: Winston's "Putting a Value on Natural Capital," there is a discussion of the valuation of natural…

A: Environmental valuation has customarily been considered with regards to non-market valuation. Its…

Q: Suppose that the interest rate is 4 percent. What is the future value of $100 four years from now?…

A: Interest rate = 4%Principal amount = $100

Q: What is estimation of economic Opportunity cost of capital

A: There are different methods to to estimate the economic opportunity cost of capital. Such as:-…

Q: Why it is not ideal to invest according to what the board lot is telling you? 2. What should be the…

A: A board lot is the basic trading unit for round lots determined by a stock exchange. The objective…

Q: A family of four has an income of $15,000 today and will earn $24,000 tomorrow. If the family…

A: Introduction Here total income of two period = $15,000 + $24,000 = $39,000 Consumption of the family…

Q: Why is the supply of loanable funds upsloping? Why is the demand for loanable funds downsloping?…

A: Loanable funds refer to the set of all forms of credit available in the market including loans,…

Q: Using the concepts of real interest rate and expected rate of return, test the relationship between…

A: The link between saving and investment is a major source of disagreement in macroeconomics. Before…

Q: ers to the professed interest rate.   a Nominal   b Effective   c Ordinal   d Actual

A: Professed  interest rate or stated rate is the rate that banks or lender shows the interest rate…

Q: What is the relationship between the low-interest rate and inequality?

A: The central bank's political economy policy is thought as financial policy. it's a demand-side…

Q: What are the implications of inequality between saving and investment in an economy?

A: Saving: It refers to the amount of money that is not being used by the people. The people will save…

Q: Explain the difference between "capital", "human capital", and "financial capital"?

A: Entrepreneur is responsible for the movement of enterprise. Entrepreneur is geographically as well…

Q: How would the interest rate change as a result of the following?a. A rise in the demand for…

A: Interest rate is the percentage of the principal amount charged by the lender on borrowings. Banks…

Q: Discuss why you would expect the saving-borrowing pattern to differ by occupation (for example, for…

A: "Savings refers to the process of setting aside some part of income for future use." Individuals may…

Q: all else equal, what does a lower interest rate mean for firms? what does a lower interest rate…

A: Interest rate positively related with the savings and negatively related with the investment. When…

Q: What is the difference between the rental price and the purchase price of capital?

A: In economics, the rental price (rk) of capital refers to the opportunity cost of hiring capital.…

Q: It has been said that a society with high savings rate is a society with a high standard of living.…

A: (Q) It has been said that a society with a high savings rate is a society with a high standard of…

Q: Suppose that capital markets are imperfect and some workers face borrowing constraints (cannot…

A: When the capital markets are imperfect and some workers face borrowing constraints (cannot obtain…

Q: Using the graph of the loanable funds market below, if the supply of loanable funds increases from…

A: Consider the graph movement below

Q: The following graph shows the supply of and demand for capital in a market over the last year. You…

A: Answer -  The market interest rate increased by 2.0%, and the amount of capital  borrowed "…

Q: What is demand for Loanable Funds and what are the fields where from these Demand for Loanable funds…

A: Loanable funds include the forms of credit like loans, saving deposits, bonds, etc. The loanable…

Q: On January 1, 2012, Albert invested $8,000 at 5 percent interest per year for three years. The CPI…

A: A continuous increase in the general price level is referred to as inflation. The rate of interest…

Q: Interest Rate Question 31 Which of these scenarios would result in the change shown below in the…

A: Equilibrium in the market occurs at the intersection of demand and supply curves.

Q: Explain why a university degree can be treated as a form of capital.

A: Human Capital is a measure of education, skills, attributes and capacity of labour which affect the…

Q: Describe the effect that higher income has on life expectancy in terms of relative length and…

A: Based on actuarial information, life expectancy is the statistical age at which a person is…

Q: What group of people benefits from a higher interest rate? Explain how they benefit

A: Interest is the opportunity cost of holding money.

Q: What is interesting about one of the HRM Functions, "Compensation and benefits

A: In HRM, compensation and benefits relate to the wage, monetary, and non-monetary benefits that a…

Q: interest rates, which leads to v investment and economic growth. A tax law change that successfully…

A: Increase or decrease in taxes come under the fiscal instruments available with the government.…

Q: In what way is a college degree a form of capital?

A: ‘Capital’ refers to the assets(which include plants, equipment,  physical tool etc) which…

Q: Assume that Sarah agrees to lend $100 to Sam for one year. Sam agrees to pay Sarah $117 at the end c…

A: As it is given that Sarah lends $100 for one year to Sam Sam after one year pays = $117 inflation…

Q: Explain Three ways that a reduced rate of interest influences real capital investment.

A: Answer - Need to find- Explain Three ways that a reduced rate of interest influences real capital…

Q: Is it possible for the nominal interest rate to be negative? Why or whynot?

A: Nominal Interest Rates are those interest rates which prevailed in an economy in a particular period…