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3 years ago

How does the financial market impact the economy?

Business

2 answers:

hoa [83]3 years ago

4 0

Answer:

Stock markets, Consumer spending and business investment slows down (which reduces economic growth), Falling interest rates can stimulate economic growth. Fiscal policy can also affect the economy

Inessa05 [86]3 years ago

3 0

Answer:

Stock markets are one of the factors that affect the economy, but there are others as well. Consumer spending and business investment slows down, which reduces economic growth. Falling interest rates can stimulate economic growth. Fiscal policy decisions also can affect the economy.

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Coffee and tea are substitutes in consumption. If there is an increase in the price of coffee, assuming a positively sloped supp

exis [7]

Answer:

Will increase

Explanation:

Substitutes are the goods which have high elastic demand or positive cross elasticity of demand. An increase in price substantially affects the demand for a substitute good. For example, if tea and coffee are substitutes, an increase in the price of coffee will increase the demand for tea and the overall surplus in the team market.

5 0

3 years ago

If a bank decides that it wants to hold $1 million of excess reserves, what effect will this have on checkable deposits in the

Alja [10]

Answer:

C. Checkable deposits decline by $10 million.

Explanation:

The banks must keep a reserve of money at Central Banks, the amount is defined by the reserve ratio, 10% in this case, but the banks could keep an extra reserve of money at Central Banks, in this case it's $ 1 million, so, if the bank decides to keep that reserve it means will be less money available to checkable deposit in the same amount.

When the banks keeps reserve by his own will, the required reserve ratio is not applicable to the amount, is the same situation as if we want to keep our money in the bank, for banks, they keep money in Central Banks.

hoping having been clear.

7 0

3 years ago

cehgg In general, what is the limitation on the deductibility of business interest expense? What happens to any business interes

qaws [65]

Answer:

Business interest deduction limitation does not allow net business expenses (business interest expense less business interest income) greater than 30% of the adjustable tax income of the business.

Amounts that fall into this category can be carried for Ward to future tax years for indefinite number of times until it can be applied.

Individuals exempted from business income deduction limitation include real estate and farming businesses. For these businesses they are not automatically exempted, but must elect to be exempted.

Explanation:

8 0

3 years ago

What is 5-6-(-7)+-10-21

ladessa [460]

5-6+7-10-21

-1+7-31

5 0

3 years ago

Read 2 more answers

The prepaid insurance account had a balance of $3,000 at the beginning of the year. The account was debited for $32,500 for prem

exis [7]

Answer:

1. Insurance expense A/c Dr $30,700

To Prepaid insurance A/c $30,700

(Being the insurance expense is adjusted)

2. Insurance expense A/c Dr $30,700

To Prepaid insurance A/c $30,700

(Being the insurance expense is expired)

Explanation:

The journal entries are shown below:

1. Insurance expense A/c Dr $30,700

To Prepaid insurance A/c $30,700

(Being the insurance expense is adjusted)

The computation is shown below:

= Balance in prepaid insurance account + premiums on policies purchased - unexpired insurance applicable

= $3,000 + $32,500 - $4,800

= $30,700

2. Insurance expense A/c Dr $30,700

To Prepaid insurance A/c $30,700

(Being the insurance expense is expired)

7 0

2 years ago

How does the financial market impact the economy?​

How does the financial market impact the economy?