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4 years ago

When government expenditures increase, the interest rate

Business

1 answer:

Julli [10]4 years ago

5 0

Answer:

The correct answer is option d.

Explanation:

When there is an increase in the government expenditures, the income in the economy will increase. As a result, the demand will increase. The increase in demand will increase the price level.

The suppliers will produce more. To increase output more capital investment will be required. This will further cause an increase in the demand of loan-able funds. So, the interest rate will increase as well.

With the increase in interest rates, the cost of borrowing will increase. This will lead to lesser capital investment and as a result the aggregate demand will be smaller, because of lower production and thus lower income.

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Financial accounting is utilized by ________ in order to make business decisions:

alex41 [277]

Answer:

a. stockholders and creditors

Explanation:

Financial accounting is utilized by stockholders and creditors in order to make business decisions.

The shareholder use financial accounting reports to determine if the company's performance is as expected and to decide if more money should be invested or funds invested be pulled out (through the sales or transfer of equity).

Creditors use financial accounting to analyze the ability of the company to pay up debts owed to them when due, also to know if to continue to extend credit facilities to the organization.

Production employees rarely use financial accounting, rather, they are more concerned with management accounting considering elements like production cost, material variances, sales budget etc.

Customers are predominantly concerned about the availability of products and the presence of close substitute.

Hence the right option is a.

6 0

4 years ago

What does it mean for a decision maker to maximize value? Select one: a. to make the decision to be as clear and logical as poss

Irina-Kira [14]

Answer: Option D

Explanation: In simple words, value maximization in decision making refers to the concept in which the decision makers tries to make a decision through which both the parties involved gets maximum benefit.

Thus, he takes into consideration the concerns of both the parties without any bias and tries to make the best outcome out of it.

Hence from the above we can conclude that the correct option D.

7 0

3 years ago

Which 2 statements are true regarding Intuit-approved QuickBooks Online apps?

Zielflug [23.3K]

Answer: • You or your client can add apps to the client's account

• They must be available via the Apps screen in QuickBooks Online Accountant or apps.com

Explanation:

You didn't give the options to the questions but I got the options online. Quickbook refers to an accounting software package that is used by businesses to pay bills, accept payments, do payroll functions etc.

The correct statements regarding Intuit-approved QuickBooks Online apps include:

• You or your client can add apps to the client's account.

• They must be available via the Apps screen in QuickBooks Online Accountant or apps.com

5 0

3 years ago

Partitioning the internal rate of return is useful because it helps the investor to determine how much of the return is from ann

Anestetic [448]

Answer:

A) True

Explanation:

Partitioning the internal rate of return (IRR) means dividing the returns from; cash flows from annual operating vs. cash flows from the resale of the investment.

The greater the proportion of resale cash flow, the greater the risk for the investor. The more return the investor gets from annual operating cash flows, the better.

4 0

3 years ago

You are considering purchasing a CNC machine which costs $250,000. This machine will have an estimated service life of 14 years

MariettaO [177]

Answer:

$81,301.80

This is the yearly reveneus required to break even the project at 15% return

Explanation:

We need to solve for the equivalent annual cost to break-even financially at 15%

PV of the salvage value

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity $15,000.00

time 14.00

rate 0.15000

$\frac{15000}{(1 + 0.15)^{14} } = PV$

PV 2,119.9299

list price: 250,000 - quota: 2,119.93 = 247,880.07

Now we solve for the equivallent annuity payment for this:

$PV \div \frac{1-(1+r)^{-time} }{rate} = C\\$

PV 247,880.07

time 14

rate 0.15

$247880.07 \div \frac{1-(1+0.15)^{-14} }{0.15} = C\\$

C $ 43,301.795

Now, we add up the maintenance cost:

43,301.80 + 38,000 = 81,301.8

This is the yearly reveneus required to break even the project at 15% return

6 0

4 years ago