1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Simora [160]
3 years ago
13

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

You might be interested in
The amount of the outstanding checks is included on the bank reconciliation as a(n) deduction from the balance per company's rec
Sphinxa [80]

Answer:

D) deduction from the balance per bank statement

Explanation:

A bank reconciliation statement is a document that matches the cash balance on a company’s balance sheet to the corresponding amount on its bank statement. Reconciling the two accounts helps determine if accounting changes are needed. Bank reconciliations are completed at regular intervals to ensure that the company’s cash records are correct. They also help detect fraud and any cash manipulations.

7 0
3 years ago
Marco, Jaclyn, and Carrie formed Daxing Partnership (a calendar-year-end entity) by contributing cash 10 years ago. Each partner
kirill [66]

a. The hot assets per Section 741(a) for this sale are as follows:

i. Accounts receivable

ii. Inventory

iv. Potential depreciation recapture in the equipment

b. Marco's gain or loss on the sale of his partnership interest is $33,000.

c. The character of Marco's gain or loss is <u>iv. $33,000 capital gain</u>.

<h3>What is a partnership interest?</h3>

A partnership interest refers to a partner's ownership and benefits that accrue from the partnership.

The partnership interest entitles the partner to participate in the distribution of profits and losses arising from the partnership business.

<h3>Data and Calculations:</h3>

Each partner's outside basis = $104,000

Sale proceeds of Marco's partnership interest = $137,000

Gain = $33,000 ($137,000 - $104,000)

Thus, Marco, who sold his partnership interest to Ryan, had a capital gain of $33,00 because of the difference between the sale proceeds and the partner's adjusted basis in the partnership interest.

Learn more about partnership interests at brainly.com/question/14835194

4 0
2 years ago
Fill in the blank with one of the following words: bacteria, fungi, parasites, viruses.
denis23 [38]

Answer:

Corona and china

3 0
3 years ago
Expectancy theory suggests that managers must recognize employees work for a variety of reasons, these reasons may change over t
lana66690 [7]

TRUE

Explanation:

  • Managers appoint employees because they are able to produce work.
  • It is mandatory for a manager to keep recognition because task..
  • It could be monotonous,hard and the learning curve of this employee.
  • Existing employee can complete the task much faster, new ones.
  • Manager has to give champions of the month,spot award, golden.
  • Award it gives the employee that exponential boost and happiness.
  • Those things can change over time depending on the business.
  • If Manager in a particular business doesn't require recognition.
  • Manager provides promotion,salary, hike, bonus and others.
  • This self of awareness employee is comfortable, with Manager.
  • For a long time.

7 0
4 years ago
EA16.
Artist 52 [7]

Answer:

Explanation:

The journal entry is shown below:

Work in process A/c - shaping department Dr $35,000

Work in process A/c - packaging department Dr $25,000

         To Manufacturing overhead A/c $60,000

(Being apply overhead to the manufacturing departments is recorded)

The computation is shown below:

For shaping department

= 3,500 machine hours × $10 per machine hour

= $35,000

For Packaging department

= 2,500 machine hours × $10 per machine hour

= $25,000

5 0
3 years ago
Other questions:
  • What percent of all businesses in the United States are corporations, and they account for 80% of the total business dollars gen
    15·1 answer
  • As a leader, some of your toughest challenges will arise when people do not want to do what has to be done. leaders have to impr
    5·1 answer
  • A professional basketball players' union negotiates a contract that dramatically increases all players' salaries. How would this
    7·1 answer
  • If your laptop is not able to connect to your wireless network, which of the following might be a likely cause of the problem?
    9·2 answers
  • "Lyla is a little more efficient at making potato soup than Jose. She is a lot more efficient than Jose at making bread. They de
    14·1 answer
  • Loretta Bolero wants to run for office but cannot devote more than two years to the job. What office do you suggest that Loretta
    9·2 answers
  • Which of the following factors cause a decline to both price and the quantity being sold?An increase in demand No change in dema
    11·1 answer
  • Joe Pie is considering investing in a Heaven Piza franchise that will require an initial outlay of $100,000. He conducted market
    6·1 answer
  • Investment depends on the ______ interest rate, and money demand depends on the ______ interest rate. a. real; real b. nominal;
    9·1 answer
  • At the end of January of the current year, the records of NewRidge Company showed the following for a particular item that sold
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!