Answer:
1. When China decides to reduce its capital investment in the US, US's capital inflows, which are a source of loanable funds in the US, take a hit. This leads to a reduction in supply of loanable funds in the US, shifting the supply curve leftward.
2. When a ban is imposed on fast food restaurants, the amount loanable funds demanded by the fast food industry reduces, leading to a leftward shift m the demand curve of loanable funds.
3. When fast food restaurants are allowed to open franchised locations, the amount loanable funds demanded by the fast food industry increases, leading to a rightward shift m the demand curve of loanable funds.
4. When the US government reduces its deficit, it reduces its borrowings. A reduction in borrowing by the US government leads to a reduction in the demand for loanable funds, and therefore shifts the demand curve fur loanable funds leftward.
5. When individual start to spend more owing to the wealth effect, savings reduce, leading to a fall in the supply of loanable funds. Due to this, there occurs a leftward shift in the supply calve for loanable funds.
Answer:
A minority owner own or control to ensure that he or she can gain control of one seat on the board of directors must have <u>720001 shares.</u>
Explanation:
Number of shares he must own = Total number of shares/(Number of directors + 1)
= 3.6 million/(4+1) + 1
= 720001
Answer:
a. 6.625.
b. C = 80 billion, DES = 800 billion and RES = 80 billion.
Explanation:
a) Monetary base = CU + RES = 160 billion. Money supply = CU + DES = 1060 billion. R-D ratio = 100/1000 = 0.10, C-D ratio = 60/1000 = 0.06, money multiplier = (1 + C-D)/(C-D + R-D) = (1 + 0.06)/(0.10 + 0.06) = 6.625.
b) Money multiplier = (1 + 0.10)/(0.10 + 0.10) = 5.5, money supply = monetary base x multiplier or money supply = 160 x 5.5 = 880 billion. CU + DES = 880 billion and C-D = 0.10. Hence C = 80 billion, DES = 800 billion and RES = 80 billion.
Answer:
Results are below.
Explanation:
Giving the following information:
Break-even point in sales= $960,000
Actual sales= $1,200,000
<u>To calculate the margin of safety in dollars and as a percentage, we need to use the following formulas:</u>
Margin of safety= (current sales level - break-even point)
Margin of safety= (1,200,000 - 960,000)
Margin of safety= $240,000
Margin of safety ratio= (current sales level - break-even
point)/current sales level
Margin of safety ratio= 240,000 / 1,200,000
Margin of safety ratio= 0.2 = 20%
Answer:
The machine has a useful life or 4 years and residual value of $1400 so its total The Depreciable Amount is $21,600 (22000-1400)
If we use straight line method depreciation in each year will be 21,600/4=$5400
If we use Units of production method then:
Year 1= 21,600*4120/10300=$8640
Year 2=21600*3090/10300=$6480
Year 3=21600*2060/10300= $4320
Year 4= 21600*1030/10300=$2160
If we use the double-declining method
Rate of Depreciation = 1/4*2=50%
Year = 0.5*21600=$10800
Year 2=0.5*(21600-10800)=$5400
Year 3= 0.5*(10,800-5400)= $2700
Year 4= (5400-2700)= 2700
Explanation:
