Answer:
the answer is C hope this helps
Answer:
In order for the government to be able to help with a problem, the problem must be brought to the proper of government and the proper.In order for the government to be able to help with a problem, the problem must be brought to the proper of government and the proper.
Explanation:
Answer:
The answer is: C) Investment spending by businesses varies inversely with the interest rate.
Explanation:
This statement is true all the time. When a company evaluates the costs and benefits of an investment, interest rate plays a fundamental part in those calculations. The two basic reasons for that are:
- The higher the interest rate a company (or any individual) has to pay for a loan, the harder it is for the company to repay the loan.
- The interest rate a bank charges is usually correlated to the opportunity cost of an investment. The higher the interest rates banks charge, the higher the internal rate of return (which is used to calculate the Net Present Value of an investment) will be. This is because banks don´t print money, they take in deposits and then they loan the money the someone else. So if the interest rate the bank charges is high, usually the interest rates the bank pays for the deposits is also high. Instead of investing, a company might just put their money on the bank and earn a better return rate.
Generally, a firm's asset deflation mostly reflects a decline in the productive capacity of assets and therefore reduces potential output.
<h3>What is an
asset deflation?</h3>
This refers to the general reduction in the value of firm's assets such as lands, homes, office, machine etc \.
Most time, the firm's asset deflation mostly reflects a decline in the productive capacity of assets and therefore reduces potential output.
Therefore, the Option A is correct.
Read more about asset deflation
<em>brainly.com/question/25179281</em>
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