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Ann [662]
3 years ago
8

As the price level falls, the cost of borrowing money will , causing the quantity of output demanded to . this phenomenon is kno

wn as the effect. additionally, as the price level falls, the impact on the domestic interest rate will cause the real value of the dollar to in foreign exchange markets. the number of domestic products purchased by foreigners (exports will therefore , and the number of foreign products purchased by domestic consumers and firms (imports will . net exports will therefore , causing the quantity of domestic output demanded to . this phenomenon is known as the effect.
Business
1 answer:
seropon [69]3 years ago
5 0
<span>As the price level rises, the cost of borrowing money will rise, causing the quantity of output demanded to fall. This phenomenon is known as the interest effect. 

When the interest rate increases those borrow money will still need to continue to do so but the demand for it will fall because of the amount of interest those borrowing will need to pay back. These interest rates are all subject to changes within the economy and the reflection of interest depends on the additives going on within the economy. </span>
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Digiron [165]

Answer:

The correct answer is 65.

Explanation:

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3 years ago
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pashok25 [27]

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4 years ago
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drek231 [11]

Answer:

Today, the investment is worth $31,997.29

Explanation:

Giving the following information:

An investment offers $5,900 per year for 15 years, with the first payment occurring one year from now. The required return is 6 percent

First, we need to calculate the final value, using the following formula:

FV= {A*[(1+i)^n-1]}/i

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Now, we can determine the present value:

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