Answer: c. An increase in the aggregate price level causes consumer and investment spending to fall because consumer purchasing power decreases and money demand increases.

Explanation:

The Aggregate Demand (AD) curve is used to measure the impact that price level has on the expenditure in the economy.

The AD comprises of Investment, Consumption Spending, Government spending and Net Income.

When prices are high, households will spend less as they cannot afford to spend a lot which will reduce consumption spending.

Another result of a high price level is that people will have less money to save and so there will be a lower supply of loanable funds.

Both of these components of the AD reduce when prices increase and vice versa. This is why the AD is downward slopping.

3 0

3 years ago

On January 1, Year 1, the Mahoney Company borrowed $168,000 cash from Sun Bank by issuing a five-year 8% term note. The principa

Fudgin [204]

Answer:

The correct option is $27,285.

Explanation:

Annual interest =$168,000*8%

annual interest =$13,440.00

Annual repayment=$40,725.00

Principal repayment=Annual repayment-interest repayment

principal repayment=$40,725.00-$13,440.00

principal repayment=$ 27,285.00

The correct option is last option.

The first option is wrong because it is the interest repayment,not principal repayment.

The third option is also wrong because it comprises both interest and principal repayments

The option is $37,467 does not feature in the computation in anyway

6 0

3 years ago

Read 2 more answers

Before you move forward, summarize the changes you will need to make to your new budget. Describe these changes in at least two

kompoz [17]

Answer: yes

Explanation:

The right answer on edge is: I need to change my budget so that I save at least $300 per month. Over twelve months, this will increase my savings by $3,600. I also need to change my budget to save for a new computer, so I need to save an extra $100 a month for that. In total, I need to save $400 a month.

10 0

3 years ago

File cabinets are conventional storage cabinets that are deeper than they are wide and have files arranged from front to back.

Alex17521 [72]

Answer:

Vertical

Explanation:

THIS IS THE COMPLETE QUESTION BELOW

_______ file cabinets are conventional storage cabinets that are deeper than they are wide and have files arranged from front to back.

A filing cabinet can be regarded as piece of office furniture that is utilized in storage of paper documents in set file folders. It could be vertical files or lateral files. A vertical file posses drawers which extends from short sides of cabinet. It should be noted that vertical file cabinets are conventional storage cabinets that are deeper than they are wide and have files arranged from front to back.

5 0

3 years ago