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lisabon 2012 [21]
3 years ago
5

Lower interest rates cause a(n) ____________in capital utilization, which shifts the production function __________and thereby s

hifts the LRAS curve ______________.
Business
1 answer:
Anna71 [15]3 years ago
5 0

Answer:

The correct answer here to the first fill in the blank is Increase and for the second one it is Upward and for the third one it is Rightwards.

Explanation:

If there is any change in the interest rate or tax treatment , there will be an impact on the capital utilization , which will then help in determining the positions of the LRAS (long run aggregate supply curve ) curve. So if there is an decrease in the interest rate , then it will cause increase in the capital utilization, which will then shift the production to upwards and there by shift the LRAS curve rightwards. LRAS curve shifts to rightwards when in the long run , increase in investment ( which is due to lower interest rate ) causes the economy's capacity to produce, as the production cost is reduced.

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Bonita Industries is constructing a building. Construction began in 2020 and the building was completed 12/31/20. Bonita made pa
Trava [24]

Answer:

Bonita Industries is constructing a building. Construction began in 2020 and the building was completed 12/31/20. Bonita made payments to the construction company of $3090000 on 7/1, $6408000 on 9/1, and $5840000 on 12/31. Weighted-average accumulated expenditures were

6 0
3 years ago
In _____ innovation, innovations in products or services end up completely replacing existing products or service technologies.
MakcuM [25]

Answer:

disruptive

Explanation:

The term that is being described is known as a disruptive innovation. In the context of business theory, this term refers to an innovation that creates an entirely new market and value network which ultimately disrupts the old market and value network, while at the same time taking over market-leading firms, products, and alliances. One example of this are Smartphones which disrupted laptops as the primary way consumers use the internet in today's world.

4 0
3 years ago
Peng Company is considering an investment expected to generate an average net income after taxes of $2,600 for three years. The
daser333 [38]

Answer:

NPV = $-42,124.72

Explanation:

The new present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator:

Cash flow in year 0 =  $-54,000

Cash flow each year in year 1 and 2 = $2,600

Cash flow in year 3 = $2,600 +  $7,200 = $9,800

I = 10%

NPV = $-42,124.72

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

3 0
3 years ago
Custom Foot operates six retail locations. At first glance, none looks any different from your basic old-fashioned shoe store, b
sergeinik [125]

Answer:

This is an example of mass customization

Explanation:

Mass customization is a business concept that involves mass manufacturing products that meet individual consumer wants and needs. It combines flexibility and personalization of unique made products with the low unit costs associated with mass production. It is sensitive to customer preferences with standardisation of processes, and the customer satisfaction that comes with owning a custom product.  

Custom Foot offers a basic package for their boots and shoes, and then offer customers a variety of features they can add or subtract. With this, they can provide alternatives for modifying a product without the costs associated with making a 100 percent unique product.

8 0
3 years ago
The two major markets in the circular flow of income and expenditure are the:________
Arada [10]

Answer:

[2] goods market and factor market.

Explanation:

The circular flow of income shows how exchange of money, goods and services occur in an economy.

the two flow circular income model consists of an household and a firm.

The household buys factors of production from the household in exchange for money (firms buys from the factor market). In return, households receive payment.

households then go to the goods market to purchase goods and services.

3 0
3 years ago
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