how does an unanticipated decline in the price level cause a drop in lending

Answers

Answer 1

For a number of reasons, a sudden drop in price level can result in less lending. Its potential to cause deflation, a sustained drop in the level of prices for goods and services, is one of the main causes.

People frequently postpone purchases when prices are falling because they believe that the trend will continue. This might result in less of a need for goods and services, which might result in less of a need for loans.

Deflation may raise the real value of debt, making it more challenging for borrowers to repay their loans. This is another factor. A decrease in price level, for instance, will increase the real value of the debt if a borrower takes out a loan with a fixed interest rate, making the debt more expensive.

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Related Questions

A medium-term goal takes _____ to accomplish. a. 1-2 months b. 1-2 years c. 1-5 years d. 5-10 years Please select the best answer from the choices provided A B C D

Answers

Answer:

C

Explanation:

For the accomplishment of a medium-term goal, it takes a time period of almost 1-5 years. Hence, Option C is correct.

What is a medium-term goal?

An individual or a group of people set certain goals in life. These goals can be of any type like short-term, medium-term, or long-term. All these time periods depend upon the type of task that is set under the achievement sector. As per the names, it can be understood that it also has a different time duration. For the short term, it can be either a day, a week, or a month or it can be a year.

In the context of the medium-term, the time period can be of one year to five years and for the achievement of a long-term goal, it is more than five years. For instance, if a person wants to get a graduation degree, then they have to pursue the course for a time period of three to four years, for paying a car loan or an education loan, one has to set a medium-term goal.

Thus, Option C is correct.

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This is so true don’t you think so ???

This is so true dont you think so ???

Answers

Answer:

yup

Explanation:

If the approximate market value for of a $1,000 corporate bond is $1,200 and it pays 6 percent interest, then what are comparable bonds paying?

Answers

The comparable bonds pay a 5% interest rate when the approximate market value of a $1,000 corporate bond is $1,200 and it pays 6 percent interest.

What are bonds?

A bond is a type of financial security in which the issuer owes the holder debt and is obligated depending on the terms to repay the principal of the bond as well as interest over a specified period of time.

Given that,

Approximate market value of $1,000 is $1,200

Interest rate is 6%

\(\rm\,Annual \; Interest = (face \; value)\times Interest \; rate\\ \rm\,Annual \;Interest = 1,000 \times 6\%\\ \rm\,Annual \;Interest = 60\\\\Calculation of comparable bond interest rate:\\\\Approximate \;bond \;value = \frac{Annual\; interest}{Comparable \;interest\; rate} \\\\1200 =\frac{60}{Comparable\; Interest \;Rate} \\\\Comparable\; Interest\; Rate = 5\%\)

Hence, the comparable bonds pay a 5% interest rate.

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In trading account freight belongs to which side debit or credit?

Answers

Answer:

Explanation:

In trading account, freight belongs to the debit side. It is a direct expenses on purchases and manufacturing operation

Freight is the cost incurred in transporting an item to its final destination when the terms are FOB shipping point. It is treated as part of the cost of merchandise and recorded in the inventory if the merchandise has not been sold.

Increase  in the cost of freight are recorded on the debit side while decrease are recorded on the credit side.

fiscal policy refers to the idea that aggregate demand is affected by changes in

Answers

Fiscal policy refers to the idea that aggregate demand is affected by changes in Government spending and taxes.

What is fiscal policy?

Fiscal Policy refers to government policy of using tax and spending  to meet economic goals.

Here, a government adjusts its spending levels and tax rates to monitor and influence a nation's economy.

Hence, Fiscal policy refers to the idea that aggregate demand is affected by changes in Government spending and taxes.

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Omar received $1,525 in gift when he graduated from high school. His pedants want him to save the money for collage, but Omar wants to buy new clothes, a watch, some CD’s, and a video game. He also needs new tires because the ones on his car are badly worn. Omar asked for your advice how should he spend his money

Answers

He should buy new tires and save the rest of the money for college

A typical criticism of transaction cost theory is that it relies too much on the distinction between markets and
hierarchies, conceptualising the two governance structures as mutually exclusive. What role does this distinction
play in transaction cost theory, and in what way could this be a limitation?

management/ organisational managemeng
Please provide a proper answer (400-450 words)

Answers

Transaction cost theory (TCT) is a prominent framework in the field of management and organizational studies that seeks to explain the choice between market-based transactions and hierarchical governance structures within organizations. At the core of TCT is the distinction between markets and hierarchies, which are seen as alternative mechanisms for coordinating economic activities. However, a common criticism of TCT is that it oversimplifies and dichotomizes these two governance structures, portraying them as mutually exclusive and neglecting the complexities of real-world organizational arrangements.

The distinction between markets and hierarchies in transaction cost theory is central to understanding how firms make decisions regarding the allocation of resources and the coordination of activities. TCT argues that the choice between market-based transactions and hierarchical governance is driven by the desire to minimize transaction costs, which include the costs of searching for suitable exchange partners, negotiating and enforcing contracts, and managing opportunistic behavior.

In the context of TCT, markets are characterized by arm's length transactions, where economic actors interact through a price mechanism and exchange goods or services based on mutually beneficial agreements. Markets are assumed to be efficient in coordinating transactions when information is readily available, there is low uncertainty, and there are no significant relational dependencies between the parties involved. On the other hand, hierarchies are seen as organizational forms where authority and decision-making are centralized, and economic activities are coordinated through managerial control and direction. Hierarchies are favored when transaction costs in the market are high due to factors such as asset specificity, uncertainty, and the need for close coordination and cooperation.

However, this binary distinction between markets and hierarchies has been criticized for oversimplifying the real-world complexity of organizational forms. In practice, many organizations exhibit a mixture of market and hierarchical elements, and the boundaries between the two are often blurred. For example, firms often engage in hybrid arrangements, such as strategic alliances or joint ventures, that combine elements of both market-based transactions and hierarchical control. These hybrid forms allow organizations to leverage the advantages of both governance structures while mitigating their respective limitations.

The limitation of TCT's reliance on the markets-versus-hierarchies distinction is that it fails to capture the diversity and dynamism of actual organizational arrangements. In reality, organizations adopt a range of governance structures and contractual arrangements that go beyond the simple market or hierarchy categorization. This limitation arises from TCT's static view of governance structures and its assumption of transactional efficiency in markets and hierarchical control in organizations. By focusing on the transactional aspects of economic activities, TCT neglects other important factors such as social relationships, power dynamics, and institutional contexts that shape organizational arrangements.

Moreover, the distinction between markets and hierarchies does not adequately capture the increasing prevalence of network-based forms of coordination, such as supply chains, alliances, and ecosystems, where multiple organizations collaborate to achieve common goals. These network structures involve complex webs of interdependencies and information flows, challenging the dichotomy between markets and hierarchies.

In conclusion, while the distinction between markets and hierarchies is central to transaction cost theory, it is also a limitation as it oversimplifies the diversity and complexity of real-world organizational arrangements. The rigid categorization of governance structures as mutually exclusive neglects the prevalence of hybrid forms and network-based coordination. Future research should explore a more nuanced understanding of organizational governance that incorporates multiple forms of coordination and recognizes the dynamic nature of organizational arrangements.

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how can we develop desicion making skill on ourselves​

Answers

Answer:

Six simple steps for better decision-making skills

Start with the desired outcome. Start with squad goals. ...Rely on data and insights to spot patterns. .Use S.W.O.T. analysis. ...Simulate the outcomes. ...Trust your instincts. ...Identify your cognitive biases

An architect’s functions may include which of the following? (SELECT ALL THAT APPLY.)

-planning and designing houses, commercial buildings, and other structures
-ensuring worksite safety
-collaborating with engineers
-acting as a construction manager and supervising contractors

Answers

The answer is a b and d

Answer:

the answer is planning, ensuring, and acting

PLEASE SEND HELP ASAP

Planning for regional natural disasters at work is _______.
a.
good practice
b.
unnecessary
c.
too cautious
d.
unsafe


Please select the best answer from the choices provided

A
B
C
D

Answers

Answer:

A. good practice

Explanation:

planning for these disasters can help reduce damage,injuries,even death.

Answer:

A

Explanation:

Just in case something were to happen it would be good to know where to go and what to do. It can prevent deaths and injuries if the real thing were to happen.

You are told that if you invest $11,000 per year for 23 years( all payments made at the end of each year) you will have accumulated $366,000 at the end of the period What annual rate of return is the investment offering.

Answers

Answer:

3.2%

Explanation:

this is an ordinary annuity:

future value of an ordinary annuity = annual payment x future value annuity factor

$366,000 = $11,000 x future value annuity factor

future value annuity factor = $366,000 / $11,000 = 33.2727

you can solve this in two ways:

the first is with a lot of math work in order to solve the following equation

33.2727 = [(1 + i)²³ - 1] / i

or

you can use an annuity calculator (available online) which will yield 3.2%

Double-Dip makes ice cream. The only advantage Double-Dip has over its competitors is taste. Double-Dip costs more and has more calories per unit weight. Promotions for Double-Dip should emphasize the experiential hierarchy of the ABC model of attitudes.

True
False

Answers

It is true that the only advantage Double-Dip has over its competitors is its taste.

Who is a competitor?

Anyone who engages in business with, owns a company, participates in a sport team, or supports an institution is a competitor. In a race, a person is your competition if they're aiming to outrun you. In business, we don't merely say a person is a rival. Likewise, there are rivals in politics, acting, music, athletics, and other fields. A close competitor is referred to as a rival in business. As a result, competitors produce identical products and are of a similar size. We refer to two businesses as archrivals when they are industry leaders. Coca-Cola and PepsiCo, two market share leaders in the beverage industry, produce nearly identical goods. Coca-Cola and Pepsi are fierce competitors.

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Suppose the dealer incentive per vehicle for honda’s acura brand is thought to be bell-shaped and symmetrical with a mean of $3,200 and a standard deviation of $200. Based on this information, what interval of dealer incentives would we expect approximately 95% of vehicles to fall within?.

Answers

According to this data, the dealer incentives for almost 95% of automobiles are between $2800 and $3600.

This is further explained below.

What is the empirical rule?

The 68-95-99.7 rule, also known as the empirical rule, is a statisticians' shorthand for remembering the percentage of values that lie within a range from full in a normally distributed: 68%, 95%, and 99.7% of the data fall in just one, two, and three standard deviations and variance, respectively.

The empirical rule is often the major method used to make decisions when not all data is available.

Data analysts and statisticians can predict where the data will fall when all the data are available.

The empirical rule helps determine the degree of normalcy in data collection.

Empirical law states that 95% of data with a normal distribution are within two standard deviations.

Where

Mean = $3,200

Standard deviation = $200

Therefore

CI at 95% = mean pm 2 x standard deviation

CI at 95%= 3200 pm (2 x 200)

CI at 95%= (2800, 3600)

As a result, the range of dealer incentives for about 95 percent of automobiles is between and $2800 and $3600.

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Which of the following conflict management styles may be necessary when it is apparent that the other party will take advantage of information sharing and other cooperative strategies? Forcing B Yielding © Avoiding Problem solving

Answers

When it is apparent that the other party will take advantage of information sharing and other cooperative strategies, the conflict management style that may be necessary is forcing.

Forcing is a competitive and assertive style where one party pursues their own interests without considering the other party's interests. This style is effective when the other party is seen as untrustworthy and attempts to manipulate or take advantage of the situation. It may involve the use of power and authority to achieve a desired outcome.

However, it is important to note that forcing should only be used as a last resort, as it can damage relationships and create further conflict. It should only be used when all other cooperative strategies have failed. Ideally, problem-solving should always be the preferred conflict management style, as it involves both parties working together to find a mutually beneficial solution.

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Your older sister is planning on saving money by paying her bills, spending money on fun, and then saving whatever is leftover. Why is this not the best option for saving her money?

Answers

Answer:

spend money on bills first then food then save the leftover money for later

Ofac requires depository institutions that hold blocked property to file annual reports by.

Answers

Ofac requires depository institutions that hold blocked property to file annual reports by September 30th.

What is annual report?

It should be noted that annual report is a document which describes the financial condition of a company for the previous year.

In this case, Ofac requires depository institutions that hold blocked property to file annual reports by September 30th.

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The total estimated cost of attending a public two-year college in Hasani’s home town last year was $2,265. The cost of attending the college is expected to increase 5% annually. Hasani plans to enter the college this year and attend for 2 years. Which is the best estimate for the total cost Hasani will pay for only his second year? $2,270.66 $2,275.00 $2,491.50 $2,497.16

Answers

Answer: Hi there! For this question, we will be compounding, because the cost of going of going to college goes up by 5% each year. The formula for compounding is P(1 + r)^t, where P = starting amount, r = rate, and t = time in years. First, let's add 5% (0.05) to 1. 1 + 0.05 is 1.05. We are talking about how much Hasani will have to pay in his second year. We will raise that number to the 2nd power. 1.05^2 is 1.1025. Now, we will multiply that number by2,265 to find the amount. When we multiply both numbers, we get 2,497.1625 or 2,497.16 when rounded to the nearest hundredth. There. Hasani will pay an estimated cost of $2,497.16. The answer is D.

Answer:

D

Explanation:

A source of assistance that provides small businesses with the
chance and the right to be heard is the
• Chamber of Commerce
© SBA
• SCORE
SBDC

Answers

Answer: Chamber of commerce! Have a great day!

Explanation:

Davidson company has sales of $100,000, variable cost of goods sold of $40,000, variable selling expenses of $15,000, variable administrative expenses of $5,000, fixed selling expenses of $7,000, and fixed administrative expenses of $9,000. What is davidson’s contribution margin?.

Answers

Davidson’s contribution margin for the sale of goods would be : $40,000

What is contribution margin?

Contribution margin is a business' sales revenue less its variable costs. The resulting contribution margin can be used to cover its fixed.

Contribution margin is computed as:

= Sales - Total variable cost(Variable cost of goods sold + Variable selling expenses + Variable administrative expenses)

= $100,000 - ($40,000 + $15,000 + $5,000)

= $100,000 - $60,000

= $40,000

Therefore, Davidson’s contribution margin for the sale of goods would be $40,000

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How responsible should sport/event organizations, celebrities, and athletes be for keeping their various publics happy? We know that good publicity boosts goodwill and profits. But, should individuals have to keep their personal beliefs private so they won’t offend anyone? For example, some musicians may highlight their political views on stage at their concerts. Or, an athlete may make comments in an interview that could offend certain groups. Perhaps he’s an avid hunter, a hobby that some animal rights activists would certainly not support. What do you think? Where should celebrities and athletes draw the line between building fan support and being true to themselves?

Answers

Answer:

I dont really know

Explanation:

As a factor of production, what is capital?

A. an industrial good

B. the natural resources used to create a product

C. the entrepreneur who sees how to make something useful

D. the tangible products made by labor

Answers

Answer:

Option "D" is the correct answer.

Explanation:

Labor produces tangible goods, which are referred to as capital. There are production-related man-made items such as machinery, vehicles, and chemicals. That is what sets them apart from commercial products.

Why might someone want to file a tax return even if they dont meet the minimum income requirement

Answers

A taxpayer might want to file a tax return because they want to ensure they pay necessary tax as when due.

What is a filing of tax return?

A  tax return basically means the forms filed with the tax authority by a taxpayer that entails his/her income, expenses, tax information etc.

The filing of tax return allow the taxpayers to:

calculate their tax liabilityschedule tax paymentsrequest refunds etc

However, a taxpayer might want to file a tax return even if they dont meet the minimum income requirement because they want to ensure they pay necessary tax as when due.

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The more​ ________ used, the greater the leverage a company employs on behalf of its owners.

Answers

The more​ debt used, the greater the leverage a company employs on behalf of its owners.

What is the leverage of a company?

Leverage is the quantity of debt a company has in its combination of debt and equity (its capital structure). A company with more obligation than average for its drive is said to be highly leveraged. Leverage is not necessarily wrong.

What does it suggest to employ leverage?Leverage is an investment process of using borrowed money.the use of different financial instruments or borrowed capitalTo improve the potential return of an investment. Leverage can also refer to the portion of debt a firm uses to fund assets.

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The Federal Reserve purchases large amounts of treasury securities in order
to:
A. slow down a period of rapid economic growth.
B. enforce regulations on its member banks.
C. increase the available money supply.
D. stop banks from lending too much money.
SUBMI

Answers

Answer: C. increase the available money supply

Explanation:

The supply of money is the total amount of money that a particular economy has at a particular point in time.

The Federal Reserve purchasing large amounts of treasury securities is an expansionary policy which means that it's a policy that is used to increase the money that's available in the economy.

When the government buys securities, it leads to more money on circulation. Likewise, if the federal government wants to reduce money supply, it sells securities to the people.

Therefore, the correct option is C.

C. increase the available money supply

Explanation:

The supply of money is the total amount of money that a particular economy has at a particular point in time.

Are cash-secured puts a good strategy?

Answers

Cash-secured puts can be a good strategy for some investors, depending on their investment goals and risk tolerance.

A cash-secured put is an options trading strategy that involves selling a put option while simultaneously setting aside the cash required to buy the underlying security in case the option is exercised. If the option is not exercised, the seller keeps the premium as profit. If the option is exercised, the seller must purchase the underlying security at the strike price, using the cash set aside as collateral.

One potential benefit of this strategy is that it can generate income through the sale of the put option premium. However, it also involves the risk of potentially having to buy the underlying security at a higher price than its market value, if the option is exercised. Therefore, investors who use this strategy should be willing and able to hold the underlying security for the long term, if needed.

As with any investment strategy, it's important to do your own research and understand the risks involved before deciding whether cash-secured puts are a suitable strategy for your investment goals and risk tolerance. It may be a good idea to consult with a financial advisor or professional to get a better understanding of how this strategy may fit into your overall investment portfolio.

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the magnitude of operating leverage for perkins corporation is 4.5 when sales are $100,000. if sales increase to $110,000, profits would be expected to increase by what percent? a. 4.5% b.14.5% c.45% d.10%

Answers

It would be anticipated that the profit would rise by 45%. The appropriate response to the given question is option (c).

What is Operating Leverage?

The percentage of a company's cost structure that is made up of fixed expenses as opposed to variable costs is measured by operating leverage. A corporation is said to have more operating leverage if its fixed expenses are higher than its variable costs.

Magnitude of operating leverage= 4.5

Old sales= $100000

New sales= $110000

Percentage increase in sales:

(New-old)/old = (110,000-100,000)/100,000

                       = 10%

Consequently, a percentage rise in profit might be anticipated:

sales percentage growth times the degree of operational leverage

                        = 10% * 4.5

                        = 45%

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b. ​rational, self-interested government officials seeking more funding for mass transit through higher taxes should consider

Answers

Higher taxes is very unpopular and may result in losing the future elections.

Higher tax rate means decrease in the real income of the people. This will results in rising of the inflation as higher the tax rate the more will be the cost of production.

There will be many other consequences for the implication of higher tax rates such as people will not like that government anymore because very few people if comfortable in paying more taxes.

It will increase the gap between the rich and poor.

It may be possible that in future people will not prefer this government again for charging higher tax rates.

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What types of taxes and deductions are factored into the difference between your gross pay and your net pay?.

Answers

We tend to see that deduction made to gross profit are taxes from business or firm, benefits and other payroll deductions.

What types of taxes and deductions

Generally,Gross pay this is defined as income before taxes, benefits and other payroll deductions.

Net pay is the opposite as it is income after all deductions are subtracted from their gross pay.

Therefore, deduction made to gross profit are taxes from business or firm, benefits and other payroll deductions.

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A(n) _____ identifies how you feel about an activity or subject.

Answers

Answer:

Survey

it questions and identifies how you feel about an activity or subject.

Answer: interest theory

took it on edg.

You just received a loan from your banker to buy seed and plant your alfalfa field. The loan is a discount loan and is for $5,000 for 1 year and the quoted rate was 10%. What is your APR?

Answers

Answer:

Apr = 11.11%

Explanation:

Given:

Discounted amount = $5,000

Number of year = 1

Quoted rate = 10%

Find:

APR

Computation:

Actual loan amount = $5,000[100%/(100%-10%)]

Actual loan amount = $5,000[100%/(90%)]

Actual loan amount = $5,555.56

A = P(1+r)¹

5,555.56 = 5,000( 1 + r )

1.1111 = 1 + r

APR = 0.1111

Apr = 11.11%

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