The correct answer is false.
It is false that the slope of the investment demand function indicates how sensitive investment is to changes in real interest rates. The 'steeper' the investment demand function, the less sensitive investment is to changes in the real rate of interest, all else constant.
We can say that the downward slope is the consequence of several reasons. For instance, the concept that money, its nominal value, is fixed. However, the real value of money depends on the level of prices. So the demand for money is related to the demand for it. The interest rate falls when the price level falls.
Answer:
b. 65,000 units
Explanation:
The number of units of products y must sell to yield an annual profit of $90,000 is computed as;
Break even point in sales units = (Fixed cost + Targeted profit) / Contribution margin
Given that ;
Fixed cost = $300,000
Targeted profit = $90,000
Contribution margin = $15 - $9 = $6
Therefore,
Break even point in sales units = ($300,000 + $90,000) / $6
= 65,000 units
The number of units of products y must sell to yield an annual profit of $90,000 is 65,000 units.
Answer:
$12,300
Explanation:
I will assume that Joseph invested in the fund on July 14, 2013.
We have to calculate the future value to March 15, 2014 (8 months later).
since the interest is compounded semi annually, it will earn interest on January 14, 2014.
Future value = $12,000 x (1 + 2.5%) = $12,300
since the fund is going to earn interests again on July 14, 2014, the value on march 14 is the same = $12,300
All the rest of the counties since when they do currency exchange their value of monewy is higher and they have to pay less