Answer:
The firm will pay 480 dollars each year as interest payment.
Explanation:
The interest amount is calculated by multiplying the rate of interest with the amount borrowed. In problem loan is 8,000 dollars and rate of interest is 6%, so the interest amount will be calculated as follow
Interest payment = 8,000 * 6% = 480 dollars
Answer:
B) The multiplier falls, making spending less powerful.
Explanation:
As we know that the multiplier refers to a factor where the changes with respect to increase or decrease of another things is to be seen.
Also,
MPS + MPC = 1
And,
Multiplier = 1 ÷ (1 - MPC)
or
= 1 ÷ MPS
In addition to this, MPS has the negative relationship with the multiplier
that means if the MPS increased then the multiplier decreased and vice versa
Therefore the option B is correct