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
Mnenie [13.5K]
3 years ago
8

Answer the question on the basis of the following information. Assume that if the interest rate that businesses must pay to borr

ow funds were 20 percent, it would be unprofitable for businesses to invest in new machinery and equipment, so investment would be zero. But if the interest rate were 16 percent, businesses would find it profitable to invest $10 billion. If the interest rate were 12 percent, $20 billion would be invested. Assume that total investment continues to increase by $10 billion for each successive 4 percentage point decline in the interest rate. Refer to the information. Which of the following is an accurate verbal statement of the described relationship?
a. i = 20-10L
b. i = 20-4L
c. i = 20 - 4l
d. i = 24 - 4l
Business
1 answer:
Natalija [7]3 years ago
5 0

Answer:

c. i = 20 - 4l

Explanation:

Investment=0 when interest rate is 20%

And then there is an investment of 10 billion for each 4% decrease in interest rate

Thus a unit % decrease in interest rate is 2.5billion

Thus Interest rate = 20-0.4 Investment

You might be interested in
What is a potential negative effect of an expansionary policy?
anzhelika [568]

Answer:

increased inflation ( third choice)

5 0
3 years ago
Read 2 more answers
Kate set a goal of getting along better with her younger sister. What is a more specific goal for kate?
Orlov [11]
A more specific goal for Kate would be to respect her younger sister, adore her more, and help her when times are rough.
4 0
3 years ago
Read 2 more answers
How does an economist calculate GDP for one year using the expenditure approach?
ryzh [129]
An economist calculates the GDP for one year using the expenditure approach by adding together all the amounts spent on final goods and services. This also includes investments, government consumptions and net exports. The answer to the question would be choice A.
6 0
3 years ago
Read 2 more answers
Suppose Specific Automakers is considering signing a long-term contract with the union representing its workers. Specific Automa
natka813 [3]

Answer: Worsen; benefits

Explanation:

Specific Automakers is signing a long term contract with the union who are the representative of workers.

Real wages should increase by = 2%

Expected inflation = 5%

Nominal wage increase = 7%

Actual inflation = 6%

Actual inflation is greater than expected inflation, so this would worsen the union and it is beneficial for the automakers because now real wage increase is only:

= Nominal wage - Actual inflation rate

= 7% - 6%

= 1%

This is an example of re-distributive cost of inflation.

8 0
3 years ago
After graduation from college, you will receive a substantial increase in your income from a new job. If you decide that you wil
Taya2010 [7]

Answer:

c. inferior good.

Explanation:

Inferior goods are items purchased buy a consumer as a result of his limited income such that when that consumer's purchasing power increases, he purchases other commodities in place of the one initially purchased.

Hence the  purchase more T-bone steak and less hamburger is an indication that hamburger is an inferior good to the consumer.

7 0
3 years ago
Other questions:
  • People living in rural areas have a victimization rate almost __________ than that of city dwellers.
    6·1 answer
  • As the CEO of a prosperous young company whose business processes have become so complicated that you can no longer deal with al
    8·1 answer
  • Which principle of a CSR implies that a business must answer for his actions, not only to its owners in stakeholders, but also t
    9·2 answers
  • Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil f
    10·1 answer
  • Which workplaces are typical for someone working in Marketing, Sales, and Service? Select all that apply,
    11·2 answers
  • Describe how McDonald's goods and services were in high demand by incorporating the ideas of needs and wants .
    14·2 answers
  • When purchasing disposable surgical gowns, Mercy Hospital's vice president of purchasing analyzes whether the hospital should bu
    8·1 answer
  • Four importance of Engineering​
    15·1 answer
  • Whereas productions are documents a student prepares especially for a portfolio, _____ represent a teacher's documentation of a
    6·1 answer
  • Compared to working without a buyer agency agreement, a buyer who works under a buyer agency agreement ____________.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!