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pishuonlain [190]
3 years ago
12

Which is typical relationship between time and interest rate

Business
1 answer:
allsm [11]3 years ago
5 0
One typical relationship between time and interest rate would be simple interest rate. It is the most simplest interest rate however it is not used nowadays since it  does not account for all cost along the value of the money. For this relationship, interest rate is directly proportional with time.
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Reporting the details of notes is consistent with which accounting principle that requires financial statements (including footn
alexgriva [62]

Answer:

The correct answer is Option B.

Explanation:

The full disclosure principle is a concept that requires all necessary details relating to the notes to the financial statements are provided and explained in such a way that would be understandable to the users of the financial statements.

The disclosures are expected to be in compliance with the accounting standards, regulatory pronouncements, among others.

6 0
3 years ago
Suppose Jose splits his spending across scones and coffees. Due to droughts in coffee-producing regions, the price of coffee dou
Slav-nsk [51]

Answer:

He will be less likely to spend on scones.

Explanation:

Understanding the spending pattern requires to understand the factors involving in purchasing.

  1. Income: Some people live tightly, and for that they have to cut down their expenditures and that affects their spending. Jose will not have much issues although buying scones because they will not be expensive, so this relationship is negative.
  2. Substitution: This will probably affect the the spending of Jones on scones because he used to buy both together, and if he stops spending on coffee he will not buy scones as well.
7 0
3 years ago
Decreases in the money supply affect the economy indirectly because A. interest rates decrease causing planned investment to inc
Nimfa-mama [501]

Answer:

The correct answer is option C.

Explanation:

A decrease in the money supply would reduce the availability of credit in the market. The money supply curve will shift to the left. This would further cause the interest rate to increase.

This increase in the interest rate would increase the cost of borrowing. As a result, the cost of borrowing will increase. This will cause the planned investment to decline.

Since investment expenditure is a component of aggregate demand, a decline in the investment will cause the aggregate demand to decrease as well.

8 0
3 years ago
For a perfectly competitive firm, which of the following is not true at profit maximization?a. Total revenue minus total cost is
topjm [15]

Answer: Option (d) is correct.

Explanation:

Correct option: Market price is greater than marginal cost.

In a perfectly competitive market, there are large number of buyers and sellers. So, price is determined by the market forces.

At a point of profit maximization, price is equal to the marginal cost and we have to maximize the difference of the total revenue and total cost. It was not seen in a perfectly competitive market that the price is above the marginal cost at a profit maximizing point.

Therefore, option (d) is not true.

5 0
3 years ago
Firms require capital to invest in productive opportunities. The best firms with the most profitable opportunities can attract c
Arturiano [62]

Answer:

Interest rate

Explanation:

Firms require capital to invest in productive opportunities. The best firms with the most profitable opportunities can attract capital away from inefficient firms with less profitable opportunities. Investors supply firms with capital at a cost called the <u>Interest rate</u>. The interest rate that investors require is determined by several factors, including the availability of production opportunities, the time preference for current consumption, risk, and inflation.

7 0
3 years ago
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