Answer:
"A"
Explanation:
Gross domestics product is the market value the goods and services produced in a season irrespective of who produce it whether a foreign or indigenous producer.
Gross national product is the measure of the value of goods and services produced in a season by nationals of a particular country irrespective of the location they were produced.
One major difference between the two is that gross domestic product include income payments to foreigners for their work domestically but gross national product does not.
Answer:
-$144,000
Explanation:
Cash flow from financing activities
Payment to retire bonds payable -$361,500
Proceeds from borrowing at bank (note payable) $217,500
Net cash used by financing activities -$144,000
The payment made to retired bond payable reflects the outflow of cash so we deducted it and the borrowing at bank is a cash inflow so we added it
And, the rest items are not relevant. Hence, ignored it
Answer:
The answers is: 3. A new technology like the Internet has just been introduced, and it increases investment opportunities.
Explanation:
Given there is higher demand for investment opportunities, borrowers in the economy will compete for funding while there is no change in the supply of funding, moreover, inflation rate has been constant which will finally lead to the increase in nominal interest rates.
1. Households reduce their consumption and increase their savings is not correct because higher saving will decrease interest rate as there is higher supply of funding.
2. There is a decrease in expected inflation is not correct as nominal interest rate is most likely to go down to keep real interest rate constant.
4. The economy falls into a recession is not correct as the situation will stimulate more saving and less consumption, less investment. Moreover, the Central Bank may also implement loose monetary policy which will decrease Nominal Interest rate.
5. The Federal Reserve decides to try to stimulate the economy is not correct as Federal Reserve will inject money into the economy, subsequently, nominal interest rate will go down.