Economics Today and Tomorrow, Student Edition
1st Edition
ISBN: 9780078747663
Author: McGraw-Hill
Publisher: Glencoe/McGraw-Hill School Pub Co
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An example of assets that are included in ________ would be stocks, bonds, and savings accounts.
household wealth
household income
planned investment
consumer purchases
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- Compare credit, savings, and investment services available to the consumer from financial institutions.arrow_forwardWhat is a bond? A certificate representing a loan from an investor to a corporation or government entity that makes fixed payments for a set time and eventually pays back the loan in full. A certificate of ownership in a corporation with the right to a percentage of the earnings. A payment for an investor to a corporation for the rights to future profits. A group of stocks sold together for a set price.arrow_forwardEvaluate each of the following statements and say whether it describes a loan, a bond, and/or a stock.arrow_forward
- Which has a higher average return over time: stocks, bonds, or a savings account? Explain your answer.arrow_forwardTom and Sue had W-2 earnings of $100,000 last year. They deposited $5,000 into each of their IRAs from money that was in their checking account. They also sold their five year old car for $1,000 less than it was worth. Due to a slow down in the housing market, the value of their home decreased by $25,000. What is their change in net worth? a. No change b. Minus $19,000 c. Minus $26,000 d. Plus $9,000 e. Plus $74,000arrow_forwardThe table below shows the market for credit cards at various interest rates in millions of dollars. What is the equilibrium interest rate? Interest Quantity of Financial Capital Supplied Quantity of Financial Capital Demanded Rate (Lending) ($ millions) (Borrowing) ($ millions) 9% $200 $275 10.5% $205 $255 12.0% $210 $235 13.5% $215 $215 15.0% $220 $195 16.5% $225 $175 Provide your answer below:arrow_forward
- The table below shows Demand and Supply for loanable fund at given time. Real interest rate Quantity of loanable fund demanded (billion $) Quantity of loanable fund supplied (billion $) 0.01 1000 400 0.02 950 450 0.03 900 500 0.04 850 550 0.05 800 600 0.06 750 650 0.07 700 700 0.08 650 750 0.09 600 800 0.10 550 850 0.11 500 900 0.12 450 950 0.13 400 1000 0.14 350 1050 0.15 300 1100 Instructions: Using excel, find the equilibrium real interest rate and quantity of loanable fund. show the equilibrium on a graph. If this country experiences a recession business cycle phase that decreases the demand for loanable fund by $200 billion. Find the new equilibrium real interest rate and quantity of loanable fund. Show the shift on the graph. list Two factors that shift SLF rightward and two factors that shift DLF rightward What is the meaning of crowding out?…arrow_forwardExplain the nature of individual and business decisions which drive the demand and supply of financial capital. Specifically. what kinds of factors will shift demand and supply of financial capital?arrow_forwardqUESTION 1 Please help me figure out which of the following multiple choice questions are correct. Please tell me which choices are correct and which are wrongarrow_forward
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