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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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What happens to the price of a good or service when a shortage of that good or service occurs?

Pachacha [2.7K]

Answer:

If shortage of goods and services occurs, obviously, the price will touch the sky, i. e. the price will increase twice or thrice the Real price...

8 0

2 years ago

Fama’s Llamas has a weighted average cost of capital of 10.9 percent. The company’s cost of equity is 12 percent, and its pretax

mojhsa [17]

Answer:

0.2

Explanation:

The weighted average cost of capital (WACC) is calculated as below:

WACC = (D/A) x r_D x (1-t) + (E/A) x r_E , where:

A: Market value of company asset;

D: Market value of company debt;

E: Market value of company equity;

r_D: pre-tax cost of debt;

r_E: cost of equity;

t: tax rate

Rearrange above formula a bit, we get:

WACC = (D/A) x r_D x (1-t) + (1 - D/A) x r_E

Putting all the numbers together, we have:

10.9% = (D/A) x 8.9% x (1 - 38%) + (1 - D/A) x 12%

Solve the equation, we get D/A = 17% or D/E = 0.2

So, target debt−equity ratio is 0.2

4 0

3 years ago

Why is Eagle Bank's 1-year CD the only account

Rudik [331]

Eagle Bank's 1-year CD became the only account guaranteed to return $22 in interest on a $1,000 deposit because a typical CD earns about 1.5% or less instead of 2.2%.

A certificate of deposit (CD) is a special bank savings account that earns interest on a lump-sum deposit for a predetermined period of time without withdrawals until the due period.

CDs are among the lowest-risk investments as they do not lose value if a bank fails based on the Federal Deposit Insurance Corporation (FDIC) insured guarantee.

Thus, Eagle Bank's 1-year CD became the only account guaranteed to return $22 in interest on a $1,000 deposit because a typical CD earns about 1.5% or less instead of 2.2%.

Learn more about Certificate of Deposit at brainly.com/question/1874937

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7 0

2 years ago

A firm that is considering purchasing a capital budgeting project with a beta coefficient greater than the firm's current beta c

Mariana [72]

Answer:

True

Explanation:

5 0

2 years ago

Theodore and janice have formed tj soft, an entrepreneurial venture to develop games and other kinds of software for consumers.

jeka94

The answer is<u> "demographic component".</u>

Population change results from the cooperation of demographic components: birth, demise and relocation. Along these lines, demography manages the point by point investigation of the three segments. With the estimation of such segments, different parts of the populace are broke down and deciphered. It designs and execute different advancement exercises. Birth, demise and movement are called demographic components, and additionally the deciding components of populace change since they influence the circumstance of the populace. In this way, the measure of the populace depends for the most part upon birth, passing and relocation.

5 0

3 years ago