Suppose you are in charge of the financial department of your company and you have to decide whether to borrow short or long term. Checking the news, you realize that the government is about to engage in a major infrastructure plan in the near future.a. Predict what will happen to interest rates.
b. Will you advise borrowing short or long term?

Answers

Answer 1

Answer:

Answer:

a. Interest rate will rise.

b. Borrowing on short term

Explanation:

A. The interest rate will likely go up if government embark on major infrastructure plan in the future. The reason for the rise is that it`s assumed that government will borrow to finance the infrastructure plan and when government borrows, there will be less money in the economy which will make credit scarce and interest rate to rise because of the depleting credit level in the economy.

B. I will advise to borrow on short term because of the impending rise in interest rate. If borrow on short term, the fluctuation in the interest rate will unlikely affect the short term facility. In contrast, if borrow on long term, the impeding rise in the interest rate might increase finance cost for the firm in servicing the facility and also erode the facility value.

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For the insured, insurance is fundamentally a form of:a. tax
b. premium
c. profit
d. security

Answers

D. Security

Without insurance you would have to pay a lot more money for things like medical bills and the cost to replace your house if it ever gets destroyed by a natural disaster.

It is also kind of a form of premium because in order to have insurance sometimes you have to pay some cash in advance before getting the help of the insurance provider.

It is not a form of profit or tax.

Why was Friedrich von Hayek against government intervention in an economy?A.It would reduce people’s economic freedom.
B.It would increase people’s political freedom.
C.It would raise the price of goods and services.
D.It would improve the economy’s situation.

Answers

The right answer for the question that is being asked and shown above is that: "C.It would raise the price of goods and services." Friedrich von Hayek against government intervention in an economy because C.It would raise the price of goods and services.

Answer: the answer is A

Explanation:

I just took the test on plato and got a 100%

A business plan should generally project financial and operational aspects of the proposed business for the first six months. one year. three to five years. seven years.

Answers

The right answer for the question that is being asked and shown above is that: "first six months. "A business plan should generally project financial and operational aspects of the proposed business for the first six months.

Mark is an excellent cook. He does not have any formal training but learned to cook by following the recipes of several famous chefs and his mom. Every weekend, he invites friends over for dinner so he can try new dishes and get honest feedback from his friends. Mark wants to start his own restaurant someday because he thinks he would be successful and become wealthy. Which of Adam Smith’s ideas made Mark think of starting a restaurant?A.invisible hand
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Answers

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One bag of flour is sold for $1.00 to a bakery, which uses the flour to bake bread that is sold for $3.00 to consumers. A second bag of flour is sold to a consumer in a grocery store for $2.00. Taking these three transactions into account, what is the effect on GDP?a.GDP increases by $2.00.b.GDP increases by $3.00.c.GDP increases by $5.00.d.GDP increases by $6.00.

Answers

Answer:

Taking these three transactions into account, what is the effect on GDP?

c.GDP increases by $5.00

Explanation:

The Gross Domestic product usually abbreviated as the GDP, is a measure of how much a goods and services a country can produce during a particular time period. The quantity of goods and service is usually expressed in monetary terms. it serves a a broad measure of a country's overall economic status. A higher GDP usually implies that the quantity of goods and services being produced in monetary terms is very high, there for it can be concluded that the general health of the economy is good.

To determine the GDP in our case, we need to determine the total value of a finished product to determine how much the GDP changes. The intermediate good is not included since it is not sold as a finished product but as a raw material in the production of a finished product. The following commodities are sold as finished products, for example; the bread and the second bag of floor. The change on GDP is as follows;

Change in GDP=Final GDP-initial GDP

where;

Change in GDP=unknown, to be determined

Final GDP=0+3+2=$5.00

initial GDP=assumed to be 0

replacing;

Change in GDP=5-0=$5.00

The effect on GDP is an increase of $5.00.

Grace makes $2,200 per month. She spends $300 on credit card payments, $120 per month for a furniture purchase, and $450 on an auto loan. Does she have excessive debt?

Answers

if you add 300+120+450 you will get 870 so just subtract. 2,200-870 to get 1330

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