The main determinants of the demand for loanable funds are –SELECT A LABELirrationalcapital costscyclical and investor confidence. The latter is a measure of firms’ views about –SELECT A LABELirrationalcapital costscyclical economic activity. Investors often alter their expectations for good reasons, but Keynes also considered –SELECT A LABELirrationalcapital costscyclical waves of pessimism and optimism, which he spoke of as resulting from "animal spirits," as determinants of confidence.

a. irrational
b. capital productivity
c. future
d. past
e. labor costs
f. cyclical

In allentown, pennsylvania, in the summer of 2014, the average price of a gallon of gasoline was $3.68long dasha 22-cent increase from the year before. many consumers were upset by the increase. one was quoted in a local newspaper as saying, "it's crazy. the government should step in." source: sam kennedy, "valley feeling pain at the pump," (allentown, pa) morning call, june 21, 2014. suppose the government had stepped in and imposed a price ceiling equal to old price of $3.46 per gallon. a. using the line drawing tool, draw and label the price ceiling. carefully follow the instructions above, and only draw the required object.

Pennewell publishing inc. (pp) is a zero growth company. it currently has zero debt and its earnings before interest and taxes (ebit) are $80,000. pp's current cost of equity is 10%, and its tax rate is 40%. the firm has 10,000 shares of common stock outstanding selling at a price per share of $48.00. refer to the data for pennewell publishing inc. (pp). pp is considering changing its capital structure to one with 30% debt and 70% equity, based on market values. the debt would have an interest rate of 8%. the new funds would be used to repurchase stock. it is estimated that the increase in risk resulting from the added leverage would cause the required rate of return on equity to rise to 12%. if this plan were carried out, what would be pp's new value of operations? a. $484,359 b. $521,173 c. $584,653 d. $560,748 e. $487,805

Any point on a country's production possibilities frontier represents a combination of two goods that an economy: