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3 years ago

A decrease in the interest rate results in:______.

Business

1 answer:

rjkz [21]3 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

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GDP per person tells us the income and expenditure of the a. richest person in the economy. b. poorest person in the economy. c.

ale4655 [162]

Answer:

The correct answer is letter "C": average person in the economy.

Explanation:

The Gross Domestic Product (GDP) measures the level of output of a country given a certain period -by quarter and year, usually. It considers government expenditures, private investments, consumer spending, and net exports (exports minus imports).

The GDP per capita represents the GDP per person and is calculated by dividing the GDP by the population of a country. GDP per capita represents an approximate of the expenses of an individual. Smaller richer countries such as Luxembourg or Switzerland tend to have higher GDP per capita.

8 0

4 years ago

An airport needs a modern material handling system for facilitating access to and from a busy maintenance hangar. A second-hand

Arlecino [84]

Answer:

The second hand machine should be chosen given that the NPV value is lower than that of the new system

Explanation:

cost of second hand system = $75,000

cost of new system = $150,000

New system can decrease labor hours by 20%

number of useful life ( for both systems ) = 5 years

market value of second hand system after 5 years = $20,000

market value of new system after 5 years = $50,000

Second hand system can operate for 8 hours/day for 20 days = 8*20 = 160 hours per month = 1920 hours per year

labor cost = $40 per hour

MARR = 1% per month

Determine the system that should be recommended

we have to calculate the NPV for both options

for Option 1 ( second hand system )

labor cost = 40 * 1920 = $76800

cost of purchase = $75,000

MARR = 12% p.a.

residual value = $20000

First step : calculate the PV of maintenance cost = $76800× PVAF(12%, 5 years) = $276864

Next : calculate the PV of residual value =$20000× PVF(12%, 5th year)

= $11340

NPV = (75000 + 276864 - 11340 ) = $340,524

for Option 2 ( New Machine )

Labor cost = ( 1920 × 0.8 )hours ×40 = $61440

cost of machine = $150000

Pv of labor cost = 61440×3.605 = $221491.20

Residual value = $50,000

Hence ; PV of residual value = 50000 × 0.567 = $28350

Finally calculate the NPV = (150000+221491.20-28350) = $343,141.20

7 0

3 years ago

ROE is computed as: A. Net income attributable to controlling interest / Average equity attributable to controlling interest B.

Korvikt [17]

Answer:

The correct answer is E

Explanation:

ROE termed as or stand as Return on Equity, which is described as the profitability ratio that evaluates the firm ability for generating the profits from its shareholders investment in the company or firm.

The formula to represent ROE is value of Net Income attributable to the equity shareholders.

ROE = Net Income agter Taxes / Shareholders Equity

And there is one more formula which is a disaggregation of ROE into the non- operating as well as operating components, which is as:

ROE = [ROE +(FLEV × Spread)] x NCI

Therefore, option A and C are correct.

6 0

3 years ago

Kennedy’s alliance of progress program provided $25 billion in aid to countries in?

Annette [7]

President Kennedy aimed to provide economic assistance, and consolidate democracy and social justice in Latin America.

Kennedy proposed, via the corporation for international improvement and the Alliance for progress, both launched in 1961, to mortgage greater than $20 billion to Latin American nations that would sell democracy and adopt significant social reforms, specifically in making land possession possible for more numbers.

The Peace Corps, a program that despatched younger volunteers to foreign places to assist those in want, turned into probably one of the high-quality-acknowledged New Frontier programs.

Learn more about President Kennedy here: brainly.com/question/13721861

#SPJ4

3 0

2 years ago

If we add successive laborers to work a given amount of land on a wheat farm, eventually:____.

Alexus [3.1K]

Answer:

d. the increases in wheat harvested will get smaller and smaller.

Explanation:

A marginal rate of technical substitution (MRTS) can be defined as an economic principle which is typically used to represent the rate at which a factor such as capital must decrease so that the same level or quantity of production is maintained when another factor such as labor is changed (increased).

An isoquant is the slope of a marginal rate of technical substitution (MRTS) which connects the two input factors provided that the level of output or production is the same.

Also, the diminishing marginal rate of technical substitution refers to the decline (fall) in marginal rate of technical substitution (MRTS) along an isoquant that produces the same quantity (level) of output.

When an isoquant has a diminishing marginal rate of technical substitution, the corresponding isoquants are convex to the origin. Thus, the marginal rate of technical substitution (MRTS) would continue to diminish as more of a factor such as capital is used.

If we add successive laborers to work a given amount of land on a wheat farm, eventually the increases in wheat harvested will get smaller and smaller.

6 0

3 years ago

Read 2 more answers