All categories

4 years ago

The aggregate demand curve is downward sloping because

Business

1 answer:

SSSSS [86.1K]4 years ago

3 0

Answer:

D. an increase in the price of a good causes a decrease in market demand for that good.

Explanation:

First, if prices decrease, then people will feel wealthier and consume more and the aggregate demand increases. (Pigou´s effect)

Second, if interest rates decrease available domestic investors will invest in foreign countries where return (interest rates]) on investments are higher. If domestic investors invest in foreign countries the supply of dollars will increases. This will decrease the real exchange rate and then exports will be affected in a positive way; exports will increase and thus the aggregate demand.

Third, when the price level is down, consumers demand less currency, which means that they will keep more money in their bank accounts. If banks have more money, then the interest rate for loans decrease. If interest rates decrease, the cost of investment decreases too. Then, if the price for investment decreases, the demand for it increases and the aggregate demand decreases too.

You might be interested in

This paragraph explains the activity of a holding company. Can someone please explain this in simple terms.

Igoryamba

This paragraph is trying to get across that this class have a company that they owe but they can’t provide service to other businesses because they don’t own or have an agreement with these other businesses.

4 0

4 years ago

Voight company's account balances at december 31 for accounts receivable and allowance for doubtful accounts were $1,400,000 and

luda_lava [24]

$58,000 is the amount of adjusting entry for bad debts at december 31st. To calculate the adjusting entry for bad debts at december 31st we need to subtract the aloowance for doubtful accounts to accounts receivable which is $128,000 and $70,000 respectively. So 128,000 - 70,000 = $58,000. The answer in this question is $58,000.

4 0

3 years ago

Isabel invested in four-stock portfolio; she invested 20 percent of her money in Stock A, 30 percent of her money in Stock B, 25

expeople1 [14]

Answer: 1.50

Explanation:

Isabel's portfolio beta is a weighted average of the individual stock betas.

= Weight of stock A * Stock A beta + Weight of stock B * Stock B beta + Weight of stock n * Stock n beta

= (20% * 0.4) + (30% * 1.2) + ( 25% * 2.5) + (25% * 1.75)

= 0.08 + 0.36 + 0.625 + 0.4375

= 1.5025

= 1.50

5 0

3 years ago

NIKE, Inc., is the best-known sports shoe, apparel, and equipment company in the world because of its association with athletes

KIM [24]

Answer and Explanation:

The statement of cash flow involves 3 kinds of activities mentioned below:

1. Operating activities: Many transactions are based that affect the working capital following net income. It would increase the growth in current assets and a decrease in current liabilities, whereas adding the decrease in current properties and an increase in current liabilities.

This should mitigate any work capital shifts. Furthermore, the cost of depreciation is attributed to the net income and the loss on the sale of assets is attributed while the benefit on the sale of assets is deducted

2. Investing: it monitors activities involving the acquisition and selling of long-term assets. The purchase is cash outflow while the selling is cash inflow

3. Financing activities: it monitors activities that impact on the shareholders' long-term debt and equity balance. Share issue is cash inflow whereas cash outflows are redemption and dividend.

Therefore based on the above explanation, the classification is as follows

1 Financing Activity

2. Operating activity

3 Investing activity

4 Financing Activity

5 Operating activity

6 Investing activity

7 Financing Activity

8 Financing Activity

9 Operating activity

10 Operating activity

3 0

4 years ago

Organizations often start a new marketing research study by first examining secondary data primarily because

34kurt

Answer:

using this information can result in time and cost savings

Explanation:

5 0

3 years ago