All categories

2 years ago

A decrease in the interest rate results in:______.

Business

1 answer:

rjkz [21]2 years ago

6 0

Answer:

3. a smaller opportunity cost of investment and so planned investment spending increases.

Explanation:

Opportunity cost is defined as the foregone alternative when a person undertakes an activity. For example going to work is the opportunity cost of staying at home to rest.

Opportunity cost is weighed against activity to be undertaken.

In this instance the opportunity cost of investment is the alternative foregone by investors.

As interest rate decreases it makes investment attractive because the cost of doing business decreases. This make other alternatives less attractive (smaller opportunity cost).

Investment now increases.

The monetary regulation agencies use interest rate a tool to either boost or reduce investment. The higher the interest rate th lower investment, and vice versa

You might be interested in

Which of the following best represents the stream of income that is available to common stockholders?

dmitriy555 [2]

Greeting's!

<span>c. earnings before interest and taxes .
______________________________
</span>

7 0

3 years ago

U.S. GAAP for long-lived assets significantly impedes rate-of-return comparisons across companies unless the firms:

kap26 [50]

Answer: Apply the same depreciation methods and the same useful lives among similar groups of assets

Explanation:

US GAAP for long-lived assets significantly impedes rate-of-return that is, the annual income from an investment which is being expressed as a proportion of the original investment comparisons across companies unless the firms apply the same depreciation methods and also the same useful lives are applied among identical groups of assets.

6 0

2 years ago

A car dealer who sells only late-model luxury cars recently hired a new salesman and believes that this salesman is selling at l

Natasha2012 [34]

Answer:

$t=\frac{5000-5600}{\frac{800}{\sqrt{16}}}=-3$

Explanation:

Data given and notation

$\bar X=5000$ represent the sample mean

$s=800$ represent the standard deviation for the sample

$n=16$ sample size

$\mu_o =5600$ represent the value that we want to test

$\alpha$ represent the significance level for the hypothesis test.

t would represent the statistic (variable of interest)

$p_v$ represent the p value for the test (variable of interest)

State the null and alternative hypotheses.

We need to conduct a hypothesis in order to determine if the mean is lower than 5600, the system of hypothesis would be:

Null hypothesis: $\mu \geq 5600$

Alternative hypothesis: $\mu < 5600$

We don't know the population deviation, so for this case is better apply a t test to compare the actual mean to the reference value, and the statistic is given by:

$t=\frac{\bar X-\mu_o}{\frac{s}{\sqrt{n}}}$ (1)

t-test: "Is used to compare group means. Is one of the most common tests and is used to determine if the mean is (higher, less or not equal) to an specified value".

Calculate the statistic

We can replace in formula (1) the info given like this:

$t=\frac{5000-5600}{\frac{800}{\sqrt{16}}}=-3$

4 0

2 years ago

Which of the following would make the best thesis statement for a debate? a. Art and music classes are great. b. Schools should

Novosadov [1.4K]

The best answer choice would be "B". This gives the main idea of what your debate would be about. It is also clear, and not biased or opinionated.

I hope this helps!
~cupcake

3 0

2 years ago

Read 2 more answers

You are part of an Information Systems project team. Your job is to ensure that the technology and vendor suggested for use in t

LenaWriter [7]

.answer:

the correct answer is (c)

explanation:

information systems manager (IS Manager) represent data innovation in an association, regulating a group of IT experts. The job incorporates data frameworks arranging, establishment, and support, including equipment and programming overhauls. IS directors may concentrate on a particular issue, for example, arrange security or Internet administrations, or they may organise all innovation tasks

8 0

2 years ago