Please explain how financial intermediaries contribute to increasing the output of an economy.
What will be an ideal response?
Financial intermediaries can lower the cost of obtaining information as well as the risk in lending. As a result, the lower cost (fewer resources used to obtain information) leaves more resources available to produce output. Also, the reduced risk encourages greater lending which leads to more investment and increased future output.
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Refer to Scenario 2.1. If P = $15, which of the following is true?
A) Quantity supplied is greater than quantity demanded. B) Quantity supplied is less than quantity demanded. C) Quantity supplied equals quantity demanded. D) There is a surplus.
For which pairs of goods is the cross-price elasticity most likely to be positive?
a. peanut butter and jelly b. bicycle frames and bicycle tires c. pens and pencils d. college textbooks and iPods
A change in quantity supplied of a product is the result of a change in:
A. consumer income. B. the state of production technology. C. the cost of producing the product. D. the price of the product.
In 2018, Kendall Ford, an automobile dealership, spent $20,000 on a new car lift for its repair shop, $2,000 on a new copy machine for its sales division, and $600,000 on Ford Motor company stock. Unsold cars and trucks were valued at $400,000 on January 1, 2018 and unsold cars and trucks were valued at $900,000 on December 31, 2018. What is Kendall Ford's total investment spending in 2018?
A) $22,000 B) $322,000 C) $522,000 D) $1,022,000