An article in the Economist magazine in 2012 observed: America can now borrow from the bond market
Question:
An article in the Economist magazine in 2012 observed:
“America can now borrow from the bond market at a cheaper rate than at any time in the history of the republic.” Use the loanable funds model to analyze how this statement could be true even though the United States was running a large budget deficit in 2012.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (1 review)
The loanable funds model is a framework used to analyze the interaction between the supply of and demand for loanable funds which represent savings available for investment in financial markets In thi...View the full answer
Answered By
Ali Khawaja
my expertise are as follows: financial accounting : - journal entries - financial statements including balance sheet, profit & loss account, cash flow statement & statement of changes in equity -consolidated statement of financial position. -ratio analysis -depreciation methods -accounting concepts -understanding and application of all international financial reporting standards (ifrs) -international accounting standards (ias) -etc business analysis : -business strategy -strategic choices -business processes -e-business -e-marketing -project management -finance -hrm financial management : -project appraisal -capital budgeting -net present value (npv) -internal rate of return (irr) -net present value(npv) -payback period -strategic position -strategic choices -information technology -project management -finance -human resource management auditing: -internal audit -external audit -substantive procedures -analytic procedures -designing and assessment of internal controls -developing the flow charts & data flow diagrams -audit reports -engagement letter -materiality economics: -micro -macro -game theory -econometric -mathematical application in economics -empirical macroeconomics -international trade -international political economy -monetary theory and policy -public economics ,business law, and all regarding commerce
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Money Banking And The Financial System International Edition
ISBN: 978-1292000183
2nd Edition
Authors: R. Glenn Hubbard ,Anthony P Obrien
Question Posted:
Students also viewed these Business questions
-
On April 20, 2010 there was a blowout and then an explosion aboard the Deepwater Horizon platform of the Macondo oil well being drilled in very deep water in the Gulf of Mexico. Eleven people aboard...
-
Read and answer the question below. EMBRACE DEMOGRAPHICS AND SOCIETAL CHANGES Using Differences to Drive Value Force 7: Demographics and Societal Changes. One of the most important forces that is...
-
The Legalization of Marijuana Explain what were the principle reasons for the legalization of marijuana in Canada Explain the effect on consumption and harm to consumers and on the black market, to...
-
Write a program to Sort the list U,N,I,V,E,R,S,I,T,Y in alphabetical order by Bubble sort I want the complete solution steps with the solution to the question
-
A child goes down a playground slide that is inclined at an angle of 26.5 below the horizontal. Find the acceleration of the child given that the coefficient of kinetic friction between the child and...
-
Define point of ontraflexure.
-
How are internal auditing and independent auditing related?
-
Selected transactions for Capers Company during October of the current year are listed in Problem 5-1A. In Problem 5-1A. The following selected transactions were completed by Capers Company during...
-
The rectifier function 0 if x < 0 r(x) = X if x 0 is used in artificial neural networks to model the firing of neurons. However, r(x) is not differentiable at 0. Differentiability can improve the...
-
What is default risk? Is it different from default risk premium?
-
What do you understand by the term world real interest rate? How is it determined?
-
A check has the following indorsements on the back: Paul Frank Without recourse George Hopkins Payment guaranteed Ann Quarry Collection guaranteed Rachel Ott Which of the following conditions...
-
Sheffield Company had net credit sales during the year of $1450000 and cost of goods sold of $820000. The balance in accounts receivable at the beginning of the year was $160000, and the end of the...
-
On January 2, 2020, Blue Corporation issued $1,850,000 of 10% bonds at 96 due December 31, 2029. Interest on the bonds is payable annually each December 31. The discount on the bonds is also being...
-
What measures are implemented to ensure the integrity and transparency of financial projections, including rigorous validation of underlying assumptions, data integrity checks, and sensitivity to...
-
The following accounting information pertains to Boardwalk Taffy and Beach Sweets. The only difference between the two companies is that Boardwalk Taffy uses FIFO, while Beach Sweets uses LIFO. Cash...
-
How do financial projections incorporate probabilistic modeling and scenario analysis to account for uncertainty and mitigate risk in forecasting future cash flows and performance metrics ?
-
Evaluating discounted cash flow techniques Rita Hendrix is angry with Bill Shaw. He is behind schedule developing supporting material for tomorrows capital budget committee meeting. When she...
-
Where are the olfactory sensory neurons, and why is that site poorly suited for their job?
-
Consider a scenario where, over the next 10 years, the supply of aggregate bank reserves shrinks enough so that the reserve supply curve intersects the downward sloping part of the reserve demand...
-
Why might the market federal funds rate deviate from the interest rate on excess reserves?
-
The overnight reverse repo rate (ON RRP) is a supplementary monetary policy tool of the Federal Reserve. Explain how this tool can set a floor under the market federal funds rate.
-
Explain the role of mitochondria in cellular energetics, focusing on the electron transport chain, oxidative phosphorylation, and the production of ATP through aerobic respiration?
-
How do membrane trafficking processes, such as endocytosis, exocytosis, and vesicle-mediated transport, contribute to cellular communication, nutrient uptake, and organelle biogenesis ?
-
Prepare a Classified, Multiple-Step Income Statement for the "BA Company" for the year ended December 31, 2021. Please include all titles, and sub-titles. Note: Some additional non-income statement...
Study smarter with the SolutionInn App