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Sedbober [7]
3 years ago
5

Which of the following effects best explains the downward slope of the aggregate demand curve? A. A multiplier effect B. An expe

ctations effect C. A substitution effect D. An interest-rate effect
Business
1 answer:
Naddik [55]3 years ago
3 0

Answer: An interest-rate effect

Explanation: The interest rate effect shows the fact that most consumers and business finance managers will cut back on their borrowing activities when interest rates increase. It reflect that most consumers and business managers will drastically reduce their borrowing activities when interest rates skyrocket. However, it is also known as the impact of a rise in the cost of borrowing on production costs due to price inflation within an economy

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On the income statement, a merchandising company reports the cost of merchandise inventory that had been sold to customers. TRUE
Alja [10]

Answer:

True

Explanation:

The correct answer is - True

Reason -

Cost of goods sold is the inventory cost to the seller of the goods sold to customers. It Expense item with a normal debit balance.

The word expense is not written there but it is an expense item on the income statement as a reduction to Revenue.

5 0
2 years ago
On a shopping​ trip, Melanie decided to buy a light blue coat made from woven fabric. A tag on the coat stated that the price wa
ra1l [238]

Answer:

Consumer surplus is $15.99.

Explanation:

Melanie decided to buy a coat priced $79.95.  

When she brought a coat to the sales clerk, she found out that it is on a 20% discount and she has to $15.99 less than the original price.  

This means that her consumer surplus is at least $15.99.  

The consumer surplus is the difference between the maximum price a consumer is willing to pay and the price it actually pays.  

Melanie was willing to pay $79.95. But she actually paid $63.96. The difference between the two is $15.99.  

6 0
3 years ago
When it comes to life insurance, premium refers to
ch4aika [34]
<span>D. total cost of insurance coverage</span>
6 0
3 years ago
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Make a list of things that should be considered while managing a factory or an industry
riadik2000 [5.3K]
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Get Prototypes Sorted First

Form Positive Working Relationships

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6 0
2 years ago
Leia just read that the national debt owed by the federal government is at an all-time high. (Explain any possible impact on the
Elis [28]

Answer:

If the government of the country where Leia is from has a national debt at an all-time high, and at the same time, unexpected high inflation hits, the situation for the government can become extremely dire.

This is because high inflation will lower the value of the domestic currency, which is probably not the currency in which most of of the debt is owed. The proportion of the national debt that is owed in foreign currency will then become more expensive, because more units of domestic currency will be needed to exchange for the foreign currency, rendering the cost of the national debt a lot higher.

6 0
3 years ago
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