What do you think the consequences might be in financial markets if individuals consumed more of their

Fantastic news! We've Found the answer you've been seeking!

Question:

What do you think the consequences might be in financial markets if individuals consumed more of their incomes and thereby reduced the supply of funds available to financial institutions?

If individuals consume more,

▼

a. more

b. fewer

dollars will be available for investment. This would

▼

a. increase

b. reduce

the amount of money available for new projects and drive

▼

a. down

b. up

the required return (i.e., required return of investors to buy bonds). Over time, employment, salaries, and gross domestic product would

▼

a. rise

b. decline

Related Book For answer-question

Principles Of Managerial Finance

ISBN: 978-0136119463

13th Edition

Authors: Lawrence J. Gitman, Chad J. Zutter

See More Books

Posted Date: Feb 03, 2024 11:16 AM

See More Questions

What does it mean to say that individuals as a group are net suppliers of funds for financial institutions? What do you think the consequences might be in financial markets if individuals consumed...
What does it mean to say that individuals as a group are net suppliers of funds for financialinstitutions? What do you think the consequences might be in financial markets if individuals consumed...
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
____, one-way ANOVA compares the means of three or more independent samples.
George Liu, the CEO of Penn Schumann, was a creature of habit. Every month, he and Jennifer Rodriguez, the company's chief financial officer, met for lunch and an informal chat at Pierre's. Nothing...
In Exercises 9 through 16, find all vertical and horizontal asymptotes of the graph of the given function. f(x) X 2- x
The plaintiff, Thelma Agnes Smith, lived with the defendant out of wedlock for several years. When the relationship ended, she sued the defendant, seeking to enforce two written agreements with him...
Condensed financial data of Odgers Inc. follow. Additional information: 1. New plant assets costing $100,000 were purchased for cash during the year. 2. Old plant assets having an original cost of...
During the early 19th century, the Springfield (Massachu-setts) Armory provided a good example of: an increasing division of labor accounting techniques for wage payments and control of time and...
Use mesh analysis to find ix in Fig. 13.80, Where is = 4 cos(600t) A and vs = 110 cos(600t + 30º) 12 F 150 800 mH 600 mH
A wrench 0 . 5 0 0 m long is applied to a nut with a force of 8 0 . 0 N . Because of the cramped space, the force must be exerted upward at an angle of 6 0 . 0 with respect to a line from the bott...
How might a criminal justice organization effectively develop environmental scanning and recognition of interconnectedness when implementing planned organizational changes? In your response, discuss...
Your coin collection contains fifty 1952 silver dollars. If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2065,...
Organizational Justice is a theoretical concept concerned with fair practices and treatment of people in organizations. Organizational Justice is found to be associated with employee performance,...
4. A researcher wishes to estimate the number of days it takes an automobile dealer to sell a specific car model. A sample of 50 cars had a mean time on the dealer's lot of 54 days. Assume the...
Suppose you estimate that a company's enterprise value is $150 million. If it has $20 million debt outstanding, $5 million in cash, and there are 10 million shares outstanding, what's the estimated...
If an investor executes the following transactions: - Owns a security, - Sells a call with strike price Kc, - Buys a put with strike price Kp, with Kc higher than Kp, and both the call and put have...
Saccharin is an artificial sweetener that is used in diet beverages. In order for it to be metabolized by the body, it must pass into cells. Below are shown the two forms of saccharin. Saccharin has...
Maximum Bank has analyzed the accounts receivable of Scientific Software, Inc. The bank has chosen eight accounts totaling $134,000 that it will accept as collateral. The banks terms include a...
Weekend Warriors, Inc., has 35% debt and 65% equity in its capital structure. The firms estimated after-tax cost of debt is 8% and its estimated cost of equity is 13%. Determine the firms weighted...
How is the current rate (translation) method used to consolidate a firms foreign and domestic financial statements?
Using the data in Tables 7.13 and 7.14, does this farm qualify for debt (i.e., is the farm profitable, liquid, and solvent)? Table 7.13 Table 7.14 Item 2006 2007 2008 2009 2010 2011 2012 Gross cash...
The book basis of depreciable assets for Erwin Co. is 900,000 and the tax basis is 700,000 at the end of 2015. The enacted tax rate is 34% for all periods. Determine the amount of deferred taxes to...
How does an asset gain or loss develop in pension accounting?

What do you think the consequences might be in financial markets if individuals consumed more of their

Question:

Expert Answer:

The detailed answer for the above question is provided below If individuals consume more of their incomesleading to fewer dollars available for invest... View the full answer

Principles Of Managerial Finance

Students also viewed these accounting questions