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Gnom [1K]
3 years ago
10

When government expenditures increase, the interest rate

Business
1 answer:
Julli [10]3 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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1. What age group represents the highest percentage of taxpayers in 2016?
Salsk061 [2.6K]
Out of the roughly 142 million filers, people under the age of 35 account for 35 percent of all returns but just 17 percent of total AGI. By far, the largest number of filers are between the ages of 35 and 55, and they account for nearly half of total AGI
8 0
3 years ago
Which of the following sections of a business plan contains information about the different departments in the company and what
MrRa [10]
The section of a business plan that contains information about the different departments in the company and what they do is the organization section.
In it, you can see all of the employees working in a certain company, and their jobs and activities are all enlisted in that part of the business plan. This is the easiest way to find a person you need, and who is the most suitable for a job that you want to hire them for.
8 0
3 years ago
Gaw Company owns 15% of the common stock of Trace Corporation and used the fair-value method to account for this investment. Tra
Marizza181 [45]

Answer:

It is $9,000 (B)

Explanation:

Total paid dividends paid = $60,000

Return on Investment = $60,000 *15%

                                    =$9,000.

Gaw Company investment in Trace Corporation will be treated as Investment Assets. In its book ,it can only recognize its share of dividend paid as return on investment.

Gaw Company cannot recognize its share of entire net income of Trace because it doesn't have controlling interest (i.e subsidiary) in the company neither does it have significant influence (i.e associate).

3 0
3 years ago
Motor Sales sold its old office furniture for $ 8 comma 500. The original cost was $ 18 comma 000​, and at the time of​ sale, ac
Vladimir79 [104]

Answer:

$1,500

Explanation:

For the computation of effect of the transaction first we need to find out the book value sold for which is shown below:-

Book Value sold for = Original cost of the furniture - Accumulated depreciation

= $18,000 - $10,000

= $8,000

Gain = $9,500 - $8,000

= $1,500

Therefore for computing the effect of the transaction we simply applied the above formula and as we can see that there is gain of $1,500

7 0
3 years ago
The theory of _____________________________, developed by Michael Porter, focuses on the importance of country factors such as d
steposvetlana [31]

Answer:

The theory of national comparative advantage

Explanation:

The theory of National comparative advantage developed by Micheal porter,  emphasizes on the importance of country's factors such as domestic demand and domestic rivalry in explaining a nation's dominance in the production and export of particular products.

It focuses on key concepts such as Firm Strategy, Structure and Rivalry; Factor Conditions; Demand Conditions; and Related and Supporting Industries.

Micheal porter opined  that any company’s ability to compete in the international arena is based mainly on these interrelated set of location advantages that certain industries in different nations posses.  

4 0
3 years ago
Read 2 more answers
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