It is called the marginal cost
The present value of cash flow will be greater if we compound less frequently holding the stated interest rate constant. true
<h3>What is
interest rate constant?</h3>
A proportion that compares a loan's annual debt service to the sum of its principal is known as a loan constant. The annual debt service is divided by the total loan amount to determine a loan constant. Borrowers can compare the loan constants of several loans when looking for a loan before choosing one. The loan with the lowest loan constant will have reduced debt service obligations, resulting in a shorter length of time during which the borrower will pay less in interest and principal. Only loans with fixed interest rates are subject to loan constants; loans with variable interest rates are not.
A loan constant is a ratio that illustrates the annual debt service of a loan in relation to the entire loan principal.
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Direct relation. If iron is used to make steel, and iron is cheaper now, steel will also be cheaper. Decrease in price can mean they have a bunch of it, a surplus.
Supply and demand says if you got a lot of something prices go down. So if you have a lot of cheap iron, you can make a lot of cheap steel
C
A low GDP for two or more consecutive quarters is usually followed by economic contraction.