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mina [271]
2 years ago
7

Which of the following explains why the aggregate demand curve is downward sloping?a. The interest rate effectb. The real balanc

e effectc. The open economy effectd. All of these
Business
1 answer:
pishuonlain [190]2 years ago
7 0

<u>Answer: </u>

The interest rate effect explains why the aggregate demand curve is downward sloping.

<u>Explanation: </u>

  • The interest rate effect proposed by Keynes suggests the reasons for why is the aggregate demand curve downward sloping.
  • It states that, when the interest rates are low, people choose to invest owing to the decreased costs of investment. This investment stimulates a drop in the levels of price.
  • The dropped prices thus increase the aggregate demand for the commodities of which the price has dropped.
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5 0
3 years ago
Which of the following statements about federal student loans is TRUE?
dlinn [17]
It must be A because I heard about this being a true statement before
3 0
3 years ago
You’ve collected the following information from your favorite financial website.
GarryVolchara [31]

Answer:

13.48%

Explanation:

Calculation for the required return for the company's stock using this formula

Required return = (D1/P0) +g

Let plug in the formula

Required return = [$1.12(1 + 0.115) / $62.91] + 0.115

Required return= [$1.12(1.115) / $62.91] + 0.115

Required return =(1.2488/$62.91)+0.115

Required return=0.019850580194+0.115

Required return = 0.1348 *100

Required return =13.48%

Therefore the required return for the company's stock will be 13.48

5 0
2 years ago
The following trial balance was extracted from the books of Kalekeno, a sole trader, at 31st Dec2018:
vesna_86 [32]

Answer:

Stock DEC 31st 2017 23,680

Carriage outward 2,000

Carriage inwards 3,100

Returns 2050 3,220

Purchases and sales 118,740 186,000

Salaries and wages 38,620

Rent 3040

Insurance 780

Motor expenses 6,640

Office expenses 2160

Lighting and heating expenses 1,660

General expenses 3140

Premises 50,000

Motor vehicles 18,000

Fixtures and fittings 3,500

Debtors and creditors 38,960 17,310

Cash at bank 4820

Drawings 12,000

Capital 126,360

332,890 332,890

Additional information

i) Closing stock was valued at ksh 29,460 as at 30th June 2018

ii) Mr kalekeno took part of the stock amounting to ksh 3000 for personal use

iii) Salaries and wages amounting to ksh 8,000 were pre-paid and ksh 360 of motor expenses accrued

iv) Bad debts written off amounted to 860

v) Depreciation is to be provided for as follows:

 Premises at 20%

 Fixtures and fittings at 15%

 Motor vehicles at 25%

All of a above asset were depreciated at cost

a) The income statement for the year ended 30 th June 2018 ( 5marks)

b) The statement of financial position (5 Marks)​

Explanation:

7 0
2 years ago
Our company has reviewed the utilities bills for our company. We have determined that the highest and lowest bills were $5,600 a
irakobra [83]

Answer:

Variable cost per unit= $4

Explanation:

Giving the following information:

We have determined that the highest and lowest bills were $5,600 and $3,200 for January and September. We produced 1,200 and 600 units in these months.

<u>To calculate the variable cost per unit, we need to use the high-low method.</u> We will use the following formula:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (5,600 - 3,200) / (1,200 - 600)

Variable cost per unit= $4

7 0
3 years ago
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