When interest rates are high, then the consumers have a greater incentive to save more, but when interest rates are low, consumer have a greater incentive to borrow more.
<h3>What is Interest Rate? </h3>
This refers to the charge which is given for a particular loan which is replayed after a certain time.
With this in mind, high interest rates are not appealing to customers so they rather save and then borrow when the interest rates are low.
Read more about interest rates here:
Answer:
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Answer:
C. 1.3
Explanation:
market to book ratio = market capitalization / book value
- market capitalization = total stocks outstanding x stock price = 10,200,000 stocks x $16 = $163,200,000
- book value = stockholders' equity = $125,600,000
market to book ratio = $163,200 / $125,600 = 1.299 ≈ 1.3
The market to book ratio basically measures a company markets value versus its book value. Generally, if a company is profitable and successful, its market to book ratio should be higher than 1.
Limited government licenses that create a monopoly do so because the license is an entry barrier.
Hence, option C is correct.
What do you mean by monopoly in economics?
Monopoly can be defined as a situation where there is a dominance of a single seller in the market. It is opposite to the concept of perfect competition. An unregulated monopoly possesses market power and can influence prices in the overall sector.
The main features revolves around
- Only One Seller and Various Buyers.
- No Produce Replacement Option
- Very Difficult to Enter in Market.
- Pricing Control.
- Government Driven.
- Natural Monopoly.
There are usually three types of monopoly
- Natural Monopolies.
- State Monopolies.
- Un-natural Monopolies.
To know more about monopoly from the given link
brainly.com/question/28841635
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Answer:
B. They make choices based on their self-interests.
Explanation:
A market economy can be defined as the economy of a country where by the government has a minimal influence or intervention on how the market operates.
A market economy is regulated by the individuals that owns the businesses in that economy. These individuals have the ability to direct resources that they need from production to their firms and businesses.
A market economy is largely or greatly influenced and regulated by the rate of supply and demand. Consumers in a market economy have to sometimes paid a high price for the goods and services that they require. Consumers make financial decisions in a market economy by making their choices based on self interests.
A market economy is a very competitive economy because
a. the demand of goods and services by consumers have increased therefore this results in an increase in production of goods and services.
b. The producers tend to high innovative when producing this goods and services required by the consumers.
In a market economy, businesses and firms tend to have an increased of a very high rate of efficiency when producing goods and services such that they minimise or lower the cost of production while ensuring that they make high or huge amounts of profits.
