An increase in the interest rate increases the opportunity cost of holding money and leads to a reduction in the quantity of money demanded
<h3>What is
opportunity cost ?</h3>
The opportunity cost of a particular activity option in microeconomic theory is the loss of value or benefit that would be incurred by engaging in that activity, as opposed to engaging in an alternative activity that offers a higher return in value or benefit.
The value of the next best alternative or option is referred to as the opportunity cost. This value may or may not be monetary. Value can also be measured using other criteria such as time or satisfaction. One formula for calculating opportunity costs could be the ratio of what you give up to what you gain.
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Answer: True
Explanation: <u><em>The scenario given in the question is an example of global advertising campaign.</em></u>
Global advertising can be referred to as advertising on global scale unification or captivating marketable benefit of worldwide operational variances, similarities and chances in order to accomplish global aims. It is also known as a method where similar universal message is functional at a global scale<u><em>.</em></u>
Answer: You can know if you have differentiated products if we have a quality that stands out from the other competitors.
For example: Our service time is less than the competition and we also give gifts to our buyers, things that the competition does not do.
The basis for differentiation is to look for that quality that the competition does not have and that adds value to what we are doing.
Answer:
The main difference is that quotas restrict quantity while tariff works through prices. Thus, quota is a quantitative limit through imports. ... 5.3) amount is imposed then price would rise to Pt because the total supply (domestic output plus imports) equals total demand at that price.
<h2>
<em><u>Hope this helps..</u></em></h2>
Answer:
Yes the company must recognise the effects of this ruling.
Explanation:
As provided the law suit was initiated in the year 20x2, because of the activity happened in April 20x2.
Accordingly, company was already prepared for a liability of $100,000.
Whenever an event that occurs after the balance sheet is a mere confirmation to what was expected on balance sheet date, or is in alignment with things on record on the balance sheet date, it shall be provided in the balance sheet of that year.
In the given case the law suit was pending on the balance sheet date and was recorded as a liability then, now after the declaration by the judge, the additional liability of $20,000 shall be provided in the financial books of year 20x2.