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Gnom [1K]
4 years ago
10

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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-Provide public goods
Rzqust [24]

Answer:

B- Government

Explanation:

A mixed economy is a type of economy that has the characteristics of both capitalist economy and a socialist economy. It is a type of economic system in which both the private and public ownership of means of production and distribution exist together in a country.

In a mixed economy,there is joint decision making  by the  government  and private individuals provide essential services (Public goods like water, street lighting etc.) to consumers and allow private firms to provide other type of goods essential for consumer use  

4 0
3 years ago
Read 2 more answers
A Japanese firm issued and sold a pound denominated bond in the United Kingdom. A U.S. firm issued bonds denominated in dollars
wel

The U.S. bond is a Eurobond and the Japanese bond is termed a foreign bond.

Answer: Option C

<u>Explanation:</u>

The bond that has been issued by the firm in the United States of America is denominated in the US dollars only. But it is sold in Japan. So this bond is a Euro bond.

But since the bond issued by the Japanese firm is denominated in pounds. And this pound denominated bond is also sold in the United Kingdom, therefore this bond is a foreign bond and not a euro bond.

5 0
3 years ago
You are offered a chance to buy an asset for $4,500 that is expected to produce cash flows of $750 at the end of Year 1, $1,000
zloy xaker [14]

Answer:

A

Explanation:

In this case the rate that allows you to bring annual disbursements to a single value is the IRR (internal return), in this case 22.64%

8 0
4 years ago
Which of the assets has the greatest liquidity?​
Yanka [14]

Answer:

You have a choice of B. or D.

I will go with D.

Explanation:

hope it's correct

3 0
3 years ago
Someone with dollar bills to lend will never agree to make a loan with a nominal interest rate of less than zero because:
saw5 [17]
<span>Having a nominal interest rate less than 0 would mean that a depositor pays a bank to hold its money. If the annual nominal interest rate is negative 1 percent, a deposit of $1000 dollar would come out $10 dollar short the following year which is why someone with dollar bills will never agree to loan with a nominal interest rate that is negative percent.


</span>
7 0
3 years ago
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