Answer:
Varies directly with the interest rate.
Explanation:
Varies directly with the interest rate.
The opportunity cost of holding the money will be the earning that can be made by investing the money. Basically, it is the interest rate that an investment provides when money is invested. If the money is not invested and it just held then the interest rate that could be earned is the opportunity cost.
The answer to this question is Critical thinking.
Critical thinking is also known as critical analysis which means analyzing data, facts, and evidences to make a judgement. This also means evaluation, conceptualizing, and analyzing ideas and facts to create an answer or judgement. Some of the skills related to critical thinking are problem solving skills, reasoning skills, objectivity, and interpretation.
Answer:
- Factors of production, household-to-firm
- Factors of production, household-to-firm
- Goods and services, firm-to-household
- Goods and services, firm-to-household
Explanation:
As per Circular Flow of Income
- Households provide firms with factors of production - Land, Labour, Capital, Entrepreneur. They get factor incomes from firms - wages, rent, interest, profit in return.
- Firms provide households with goods & services, get prices for them in return.
- Yakov earning 'wage' by working i.e supplying 'labour' services : is flow of factor of production from households to firm .
- Juanita earning 'profit' by supplying 'entrepreneurship' service : is flow of factor of production from households to firms
- Ana paying 'price' for good 'yoghurt' : is flow of goods & services from firms to households
- Dina paying 'price' for service 'piano lesson' : is flow of goods & services from firms to households
Principal Amount P = $ 48000
Rate of interest r = 6% = 0.06
Time interval t = 7
Formula for Interest I = P x r x t => I = 48000 x 0.06 x 7 => I = 2880 x 7
Total Interest for seven years would be $20,160
