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3 years ago

An increase in interest rates affects aggregate demand by

Business

1 answer:

KatRina [158]3 years ago

5 0

Answer:

A - shifting the aggregate demand curve to the left, reducing real GDP and lowering the price level

D - consumption, investment, and net exports decrease; aggregate demand decreases.

Explanation:

If interest rates increase, it becomes more expensive to borrow money (since there is a larger amount to be paid back on top of the value of the loan) and more beneficial to save money (since banks will pay more for saving). This means that consumers are less likely to take out loans and more likely to store their money in the bank, leading to a reduction in consumption—less consumer spending, more saving. Likewise with firms, which will be less likely to invest in new capital (because borrowing funds to buy it costs more) and more likely to save profits. This reduction in consumption and investment means that aggregate demand falls, represented in a diagram by a shift to the left.

Thanks

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The Converting Department of Hopkinsville Company had 1,160 units in work in process at the beginning of the period, which were

ololo11 [35]

Answer and Explanation:

The computation of the number of equivalent units for direct material and conversion cost is shown below:

For materials

= units started and completed × completion percentage + ending work in process inventory × completion percentage

= (24,400 - 1,160) × 100% + 1,280 units × 100%

= 23,240 units + 1,280 units

= 24,520 units

For conversion

= Opening work in process inventory × remaining percentage + units started and completed × completion percentage + ending work in process inventory × completion percentage

= 1,160 units × 70% + (24,400 - 1,160) × 100% + 1,280 units × 60%

= 812 units + 23,240 units + 768 units

= 24,820 units

3 0

3 years ago

The three steps which will create triangular arbitrage profit are as follows: first step, convert ____; second step, convert ___

Vladimir [108]

Answer:

The correct option is b) USD to GBP; GBP to CHF; CHF to USD.

Explanation:

A triangular arbitrage can be described as the act of taking advantage of a foreign exchange market arbitrage opportunity created by a pricing difference between three different currencies.

A triangle arbitrage method entails three deals, with the first currency being converted to a second, the second currency being converted to a third, and the third currency being converted to the first.

In the question, USD is the first currency, GBP is the second currency, and CHF is the third currency. Based on the explanation above, the three steps which will create triangular arbitrage profit are as follows: first step, convert USD to GBP; second step, convert GBP to CHF, and third step, convert CHF to USD.

Therefore, the correct option is b) USD to GBP; GBP to CHF; CHF to USD.

7 0

3 years ago

The practice of comparing a company with its prior performance or with best practices from other companies is called A. benchmar

KatRina [158]

Answer:

A. benchmarking

Explanation:

In companies; benchmarking is the good practice as it compares the company's business processes and performance metrics to industry. There are four types of benchmarking which are internal, competitive, functional and generic. Benchmarking always facilitate to seek the best practices of your competitor and learn it to implement or take strategic decisions. Based on the data and information which is derived from benchmarking; company can modified its strategies towards the achievement of objective to excel among competitors.

3 0

3 years ago

Chaco Company’s trial was in balance at the end of the period and showed the following accounts: Accounts Payable 25,200 Cash 40

Alecsey [184]

Answer:

$92,400

Explanation:

Balance of the credit column on Chaco’s trial balance.

The Total credit column balance will be:

Accounts payable $25,200

Common Stock $21,200

Notes payable $46,000

We are going to add them up

Hence:

Total credit balance =

$25,200 + $21,200 + $46,000

Total credit balance = $92,400

5 0

3 years ago

hram777 [196]

Answer:

Both single column cash book and double column cash book are similar because they both record cash payments

Explanation:

A cash book is a book or journal used to record all business transactions within a particular period like receipts, disbursements, bank deposits and bank withdrawals. They are different cash books namely: single column cash book, double column cash book and triple column cash book.

A single column cash book is used to record payments in form of cash while a double column cash book records both cash payments as well as bank transactions.

Both single column cash book and double column cash book are similar because they both record cash payments

8 0

3 years ago