When interest rates on treasury bills and other financial assets are low, the opportunity cost of holding money is <u>low </u>so the quantity of money demanded will be <u>high</u>.
If interest rates go up, the demand for money will go down. Once it equals the new money supply, there will be no more difference between how much money people are holding and how much they want to keep, and the story is over. This is why (and how) a decline in the money supply raises interest rates.
As interest rates rise, the amount of money demanded decreases because the opportunity cost of holding money decreases. As interest rates rise, aggregate demand shifts to the left. The interest rate effect arises from the idea that higher price levels reduce the real value of household holdings.
Learn more about interest rates here: brainly.com/question/1115815
#SPJ4
Answer:
$4,248 under applied
Explanation:
For computing the ending overhead amount we need to do following calculations which are shown below:
Predetermined overhead rate is
= Total estimated manufacturing overhead ÷ estimated direct labor-hours
= $516,368 ÷ 21,880 hours
= $23.6 per hour
Now
Actual overhead applied is
= $23.6 × 21,700 hours
= $512,120
Therefore,
Overhead under applied is
= Manufacturing overhead - Actual overhead applied
= $516,368 - $512,120
= $4,248 under applied
<span>Cosmetic products will easily lose intended efficacy if exposed
to unsuitable climate like high temperature or sunlight. To think they are used for the skin and pricey, the products should be safe and not harmful.
Therefore, they should meet the standard
safety requirements. </span>
Answer:
25 Days
Explanation:
Average Account receivables:
= (Accounts receivables, beginning of year + Account receivables, end of year) ÷ 2
= (45,000 + 35,000) ÷ 2
= 40,000
Account Receivables Turnover = Net Sales on Account ÷ Average Account Receivables
Account Receivables Turnover = 584,000 ÷ 40,000
= 14.6 times
No. of Days Sales in Accounts Receivables:
= No. of Days in a year ÷ Account Receivables Turnover
= 365 ÷ 14.6
= 25 Days
Answer:
B) 50%
Explanation:
Matthew's total return on investment = (current price - original purchase price) / original purchase price
= ($150 - $100) / $100 = $50 / $100 = 0.5 or 50%
To be able to determine the annual rate of return we would need to know when did Mathew purchase the shares.