Answer: Option (a) is correct.
Explanation:
Correct Option: The supply of loanable funds but not the supply of dollars in the market for foreign-currency exchange.
If the budget deficit increases, then U.S residents will want to purchase fewer foreign assets and foreign residents wants to buy more of U.S assets.
The budget deficit in the economy has to be financed either by borrowing or by increasing taxes. This budget deficit occurred because of the tax cuts and higher government spending.
If a country running a budget deficit, which lead to reduction in national saving. We all know that interest rate is determined in the loan market, where savers supply the loans to the private borrowers.
So, if there is a fall in the national saving, this will reduced the supply of loans from savers, which raises the interest rate in an economy.
This will attract the foreign flow of capital. This means that demand for domestic assets increases because of the higher interest rate.
Now, if foreign residents want to take an advantage of higher interest rate then they first have to acquire domestic currency.
Therefore, higher interest increases the demand for domestic currency in a market of foreign exchange.
Major benefits of business in the local economy include a boost in employment and discretionary income in the community, tax income increases for local governments and a loyal customer base for businesses.
Answer:
They all help explain the downsloping demand curve
Explanation:
The options to the question wasn't provided. The complete question can be in the attached image.
The demand curve slopes downward from left to right. This indicates that the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
Income effect is a change in quantity demanded when real income change. Quantity demanded increases when real income increases and decreases when real income falls.
Substitution effect says that consumers would substituite to the consumption of a cheaper good when the price of a good originally consumed increases.
Diminishing marginal utility states that as consumption increases, utility derived from consumption falls and quantity demanded falls.
I hope my answer helps you
Answer:
Scarcity or limited resources, is one of the most basic economic problems we face. We run into scarcity because while resources are limited, we are a society with unlimited wants.
Explanation:
Society would produce, distribute, and consume an infinite amount of everything to satisfy the unlimited wants and needs of humans.
The bond can be called at par in one year or anytime thereafter on a coupon payment date. Ithas a price of $97 per $100 face value
<h3>What is
bond?</h3>
A bond is a type of financial security in which the issuer owes the holder a debt and is obligated to repay the principal of the bond as well as interest over a specified period of time, depending on the terms. Interest is usually paid at regular intervals.
Bonds are one way for businesses to raise funds. A bond is a loan made between an investor and a corporation. The investor agrees to give the corporation a specific sum of money for a set period of time. In exchange, the investor receives interest payments on a regular basis.
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