Answer:
c. planned investment spending is most likely to decrease.
Explanation:
High interests rates reduce the levels of investment in an economy. Investments are capital intensive ventures and will require borrowing to finance them. When interest rates are high, loans become expensive. For a project to be viable in times of high-interest rates, it will need to have a very high rate of return.
When interest rates are high, banks will offer a higher rate of return on savings. Using savings to finance investments become more costly. Investors would prefer to put their money in a deposit account for higher interest payments than to invest.
High-interest rate thus slows down investments expenditures. The cost of borrowing goes up while the incentives to save increase.
Answer:
The Matching principle.
Explanation:
Matching principle is the accounting principle that requires that the expenses incurred during a period should be recorded in the same period in which the related revenues are earned. This principle recognizes that businesses must incur expenses to earn revenues.
The principle is at the core of the accrual basis of accounting and adjusting entries.
Answer: proportion of extra income that is consumed. (D)
Explanation:
The marginal propensity to consume is the proportion of an additional income that an individual consumes.
For example, if a household earns an extra dollar of disposable income, while the marginal propensity to consume is 0.60 this means that at that dollar, the household will spend 60 cents and save 40 cents.
A cartel differs from a monopoly in that B) businesses making the same product agree to limit production. A cartel is an agreement between producers of goods, usually primary products like oil or natural gas, who work together to set a price at an agreed upon price that is a distortion above of what the market's equilibrium price would be for the good without the cartel's intervention.
