The federal government demand for loanable funds

Assignment Help Financial Management
Reference no: EM131843045

The federal government demand for loanable funds is ____. If the budget deficit was expected to increase, the federal government demand for loanable funds would ____.

a. interest elastic; decrease

b. interest elastic; increase

c. interest inelastic; increase

d. interest inelastic; decrease

2. Assume that foreign investors who have invested in U.S. securities decide to decrease their holdings of U.S. securities and to instead increase their holdings of securities in their own countries. This should cause the supply of loanable funds in the United States to ____ and should place ____ pressure on U.S. interest rates.

a. decrease; upward

b. decrease; downward

c. increase; downward

d. increase; upward

Reference no: EM131843045

Questions Cloud

Should this algorithm be used to find soldiers at risk : Should this algorithm be used to find soldiers at risk? Why or why not? Identify the principles and values you use to support your decision.
Common financial goals developed during planning process : What are the most common financial goals developed during the planning process ?
Comment on australias trade policy : Comment on Australia's trade policy (both positive and negative impacts on Australian economy, industries and employment)
What did the stoics believe about events in our lives : What did the Stoics believe about events in our lives? Are they under our control or not? How should we approach things that frustrate us?
The federal government demand for loanable funds : The federal government demand for loanable funds is ____. If the budget deficit was expected to increase, the federal government demand for loanable funds would
What are the limits on autonomy of a person : What are the limits on autonomy of a person and then of a person reduced to the role of a patient?
What is the overall equipment efficiency values : Breakdowns and defective products manufactured over the last 15 days on a CNC-27 machine are presented in the following table.
Write three or four paragraph essay answering : Write three or four paragraph essay answering the topic given. What is Princess Elisabeth asking Descartes to clarify?
How would holbach respond to his capabilities : If this story were true, how would Holbach respond to his capabilities? How would Ayer respond?

Reviews

Write a Review

Financial Management Questions & Answers

  Assume negative taxable income generates tax credit

You are the financial analyst for a tennis racket manufacturer. The company is considering using a graphitelike material in its tennis rackets. The company has estimated the information in the following table about the market for a racket with the ne..

  Calculate the EAC for both conveyor belt systems

Lang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $232,000, has a four-year life, and requires $73,000 in pretax annual operating costs. Calculate the EAC for both conveyor belt sys..

  Legal aspects of the case

As company secretary of Python Ltd, you have received a letter from a firm of solicitors representing Monty threatening legal action against Python Ltd. Your managing director asks you to draft a memorandum for him on the legal aspects of the case..

  Break-even point and degree of leverage

What is the break-even point in bags? Calculate the profit or loss (EBIT) on 11,000 bags and on 24,000 bags.

  Able to retire years from now with retirement income

Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with retirement income of $28,500 per month for 25 years, with the first payment received 30 years and 1 month from now. If he can..

  Annual bonds outstanding with sixteen years to maturity

A company has 7.5% semi-annual bonds outstanding with sixteen years to maturity. If the bonds are currently selling for $1,012.50 each, then is the yield-to-maturity greater than, less than, or equal to the coupon rate of 7.5%?PLEASE SHOW ALL WORK FO..

  What is this projects equivalent annual cost or EAC

A five-year project has an initial fixed asset investment of $290,000, an initial NWC investment of $26,000, and an annual OCF of −$25,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required re..

  Statements about the market for common stock

Which of the following statements about the market for common stock is most correct?

  Trading strategy to exploit profitable arbitrage opportunity

The price of gold is currently $1,200 perounce. Forward contracts are available to buy or sell gold at $1,400 per ounce for delivery in one year. An arbitrageur can borrow money at 10% per annum. Assume continuous compounding. -Clearly outline the tr..

  Discount rate for this project-what is the npv of project

The company uses a 13.8 percent discount rate for this project. Cost and cash flows are shown in the table. What is the NPV of the project?

  Security in order to produce a zero risk portfolio

what fraction of the investor's net worth should be held in security 1 and in security 2 in order to produce a zero risk portfolio?

  Assume that a portfolio of stocks had an average return

Assume that a portfolio of stocks had an average return of 12% and a standard deviation of 19% over a certain holding period. In which range do the returns fall 99% of the time, assuming the returns are distributed normally?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd