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Ivanshal [37]
3 years ago
14

Which of the following statements is CORRECT, other things held constant? Select one: a. If companies have fewer good investment

opportunities, interest rates are likely to increase. b. If individuals increase their savings rate, interest rates are likely to increase. c. If expected inflation increases, interest rates are likely to increase. d. Interest rates on all debt securities tend to rise during recessions because recessions increase the possibility of bankruptcy, hence the riskiness of all debt securities. e. Interest rates on long-term bonds are more volatile than rates on short-term debt securities like T-bills.
Business
1 answer:
jolli1 [7]3 years ago
3 0

Answer: e. Interest rates on long-term bonds are more volatile than rates on short-term debt securities like T-bills.

Explanation:

Long term bonds are considered to be more sensitive to interest rates as opposed to short term securities. If interest rates were to rise, the bond could lose value.

They are also more sensitive to inflation. If inflation rates rise, the value of payment reduces. It is for this reason that longer term bonds have maturity risk premiums added to them to cater for the amount of time the bond has till maturity.

If you need any clarification do react or comment.

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Which two factors are important to consider when choosing a production method?
Hunter-Best [27]

Answer:

-The technology that is available for the market.

- The nature of the products

Explanation:

Latest technology often able to produce larger amount of products with significantly lower time. This will help reduce the overall cost of production in the long run.   Business owner need to consider this and calculate whether the initial investment that needed to be made to install the technology will worth the value in the long run.

Nature of the products consisted of all  the characteristics that our products process. For example food products tend to not have a long shelf life unlike fashion product. This difference in characteristics influence the type of production method that business owners could implement.

For example, It is impossible for business owners to mass produce produce food products with the expectation that it can maintain their quality in the warehouse, but producer of fashion products could make that expectation.

6 0
3 years ago
Akira's uncle is about to open a car dealership. His property can accommodate a total inventory of 264 vehicles. The auto manufa
sesenic [268]

well, he has room for a total of 264 vehicles, he needs to have "five times as many cars as trucks", namely the cars : trucks ratio must be 5 to 1 or 5:1.

well, to change the total value to a ratio, we simply divide the total amount by the sum of the ratios, namely 264 ÷ (5+1), and distribute accordingly.

\bf \cfrac{cars}{trucks}\qquad 5:1\qquad \cfrac{5}{1}\qquad \qquad \cfrac{5\cdot \frac{264}{5+1}}{1\cdot \frac{264}{5+1}}\implies \cfrac{5\cdot 44}{1\cdot 44}\implies \cfrac{\stackrel{cars}{220}}{\underset{trucks}{44}}

4 0
3 years ago
Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation bet
Delicious77 [7]

Answer:

$50.57 ; $175,573.6

Explanation:

The computation of the fixed and variable portions of overhead costs based on machine-hours using high low method is shown below:

Variable cost per hour = (High Overhead cost - low overhead cost) ÷ (High machine hours - low service hours)

= ($581,145 - $503,775) ÷ (8,020 hours - 6,490 hours)

= $77,370 ÷ 1,530 hours

= $50.57

Now the fixed cost equal to

= High overhead cost - (High machine hours × Variable cost per hour)

= $581,145 - (8,020 hours × $50.57)

= $581,145 - $405,571.4

= $175,573.60

3 0
3 years ago
In the long run for a competitive firm,
Andrei [34K]

Answer:

The correct answer is letter "C": the firm is at the bottom of its short run average cost curve.

Explanation:

Competitive firms are companies that accept the equilibrium price of a given good or service within a market. If they try to raise the price, they will not be able to sell their products. It is said that <em>in the long term a competitive firm is at the bottom of its short-run average cost curve because it portraits the most efficient level of production</em>. That curve shows the optimal least-cost input combination for producing output.

8 0
3 years ago
For example, an increase in the money supply, a variable, will cause the price level, a variable, to increase but will have no l
Inga [223]

Answer:

nominal, real, & the classical dichotomy

Explanation:

A nominal variable is a value whose values are non-numeric for example gender. It is calculated based on the current – year prices.

In other words, nominal value is calculated in monetary terms, whereas real value is measured on the basis of goods or services

A real variable is a variable whose values are numeric. It is measured based on the currency of the base year.

The distinction between real variables and nominal variables is known as <u>nominal, real, & the classical dichotomy</u>.

The Classical Dichotomy is based on the assumption that states that in the long run, the nominal economy and the real economy are completely separated from each other. In the long run, nominal prices have no impacts on real variables.

7 0
3 years ago
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