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An increase in savings __________.A. provides more funds for investment

1 answer:

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An increase in savings (D) increases interest rates. An interest rate is the cost of borrowing money. It is also the compensation for the service and risk of lending money. Without that, the willingness of the people to lend money will be low.

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Matthew Liotine's Dream Store sells water beds and assorted supplies. His best-selling bed has an annual demand of 410 units.

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Given:

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Number of units to be ordered each time an order is placed

Solution:

On calculating the number of units,

$\Rightarrow \sqrt{(\frac{2(390)(38)}{5})} \rightarrow\sqrt{\frac{780\times38}{5}}= 76.99$

Therefore, to minimize the total cost, approximately 77 units should be ordered each time an order is placed.

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