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3 years ago

When interests rates are low, spending deceases. True or false?

Business

2 answers:

Andre45 [30]3 years ago

6 0

Answer:

False

Explanation:

When interests rates are low the more willing people are to borrow money to make big purchases, such as houses or cars. When consumers pay less in interest, it gives them more money to spend.

const2013 [10]3 years ago

3 0

Answer:

False, when interests rates are low, spending increases because more people are willing to spend more money to make big purchases on items such as cars or homes.

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Answer:

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Hoochie [10]

Answer:

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Explanation:

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3 years ago

A common advantage of a promotion is that ______. A. You will have longer hours b. Your relationships with your peers will chang

Anna11 [10]

Answer:

Explanation:

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2 years ago

Bob lives in San Diego and loves to eat desserts. He spends his entire weekly allowance on yogurt and pie. A bowl of yogurt is p

liberstina [14]

Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

Current Consumption Marginal Rate of Substitution

= Marginal Utility (MU) of Pecan Pie ÷ Marginal Utility (MU) of Yogurt

= 2

Utility Maximized When Marginal Rate of Substitution (MRS)

= Marginal Utility of Pecan Pie ÷ Marginal Utility of Yogurt

= $3.75 ÷ $1.25

= 3

According to the analysis, Utility-maximizing MRS (3) is more than the current MRS (2). So to increase the utility bob should have to consume less pecan pie and more quantity of yogurt.

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3 years ago