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pochemuha
3 years ago
12

Suppose consumption demand of GDP decreases during a recession while the other demands are unaffected. What happens to the equil

ibrium real interest rate in the economy?
Business
1 answer:
julsineya [31]3 years ago
7 0

Answer:

Since consumption represents almost 70% of the GDP, any change in consumption affects the economy more than any change in the rest of the components of the GDP (net exports, investment, government). If consumption decreases, then the real interest rate will decrease.

The higher the interest rate, the lower the consumption level. This should increase the savings = more investment in the economy, but since consumption is so important to the economy, a decrease in consumption will decrease the equilibrium interest rate. This lowering in the real interest rate will be carried out in order to try to increase consumption.

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Suppose, you own a screen-printing business and you enter into a contract with a local school to print 50 orange t-shirts with t
LUCKY_DIMON [66]

Answer: $500

Explanation:

Based on the scenario in the question, there's a breach of contract as the shirts aren't delivered and there are 50 t-shirts which cost $10 each that no one law is willing to buy because it has a school name and their mascot on the front.

Here, the maker of the shirt can sue for damages and since there's no resale, the amount to be sued for damages will be the price of each shirt multiplied by the total number of shirt. This will be:

= $10 × 50

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6 0
2 years ago
In order to make sure that audiences can correctly identify your mood and attitude during speech, it is necessary to make sure y
BabaBlast [244]
The correct answer for the question that is being presented above is this one: "c. Intonation." <span>In order to make sure that audiences can correctly identify your mood and attitude during speech, it is necessary to make sure you have correct intonation.</span>
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5 0
3 years ago
Read 2 more answers
Select all that apply. Select the items that describe what most likely happens when the Federal Reserve increases the money supp
11111nata11111 [884]

Answer:

Businesses borrow more money.

Consumption increases.

Explanation:

The Federal Reserve is the body responsible for conducting monetary policy in the US. Monetary policy basically consists of two actions. The increase / decrease in the money supply in the economy and the increase / decrease in the interest rate. These actions may happen together, but they are technically independent.

When the Federal Reserve increases the supply of money in circulation, more money is circulated through loans and personal spending. This is considered a policy of stimulating the economy and can be done independently of interest rate changes, although the reduction of interest is also a stimulus monetary policy that can be done in conjunction with the increase in the money supply.

5 0
3 years ago
Assume, for Vietnam, that the domestic price of textiles without international trade is higher than the world price of textiles.
nikitadnepr [17]

Answer:

a. other countries have a comparative advantage over Vietnam and Vietnam will import textiles.

Explanation:

A country has comparative advantage if it produces a good or service at a lower opportunity cost when compared to other countries.

The price of textile in Vietnam is higher when compared with other countries, this shows that Vietnam doesn't have a comparative advantage in the production of textile.

Vietnam should import textiles and use its resources to produce other goods for which it has a comparative advantage.

I hope my answer helps you.

8 0
3 years ago
What is the farthest thing in space we know about?
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That would be the galaxy called MACS0647-JD, Its a long name but If the distance estimate is correct, it formed about 427 million years after the Big Bang. Hope this helps!

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3 years ago
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