Answer:
A) Demand would increase
Explanation:
Interest rates and demand are inversely related, that is to say, if interest rates rise, demand decreases, and if interest rates go down, demand goes up.
The reason for this is that a lower interest rate means that loans are cheaper. As loans are cheaper, investments increase, and more investment means more aggregate demand because investment is one of its components.
Answer:
Total cash receipts 194,760
Explanation:
We will calculate base on the budget number provided.
We will multiply the month sales revenue by the amount expected to be colelcted on september
The receipts from account receivable on september:
<u>60% of previous month:</u>
60% of August: 198,000 = 118,800
<u>36% from the second month:</u>
36% of July: 211,000 = <u> 75,960 </u>
Total cash receipts 194,760
Answer:
C. When consumer income increases, the demand for eggs decreases.
Explanation:
Inferior goods is the type of good which demand does not increase even though the initial buyer experience an increase in purchasing power.
The reason for this is because that consumer choose to<u> purchase another product that he/she couldn't afford</u> before having an increase in income.
This 'other' product tend to be more expensive and higher in quality compared to the previous one. This is why the word 'inferior' is attached to the previous product.
From the example above, the reason why the demand for the eggs does not increase is most likely happen because the consumer choose to purchase higher quality of food. (such as a more expensive meat)
Answer:
The growth of the real GDP per capita was 7.18%
Explanation:
It is important to establish that:
Future Value = Present Value × ((1 + r)^t), given that <em>r</em> is the <em>interest rate</em> and <em>t</em> is the <em>time period</em>
Real GDP per worker increased from $40,000 to $320,000 in 30 years
Therefore, we have;
320000 = 40000*(1+r)^30
(1 + r)^30 = 8
1 + r = 8^1/30
1 + r = 1.0718
r = 0.0718 = 7.18%
