1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
k0ka [10]
3 years ago
15

Consumers should be concerned about high interest rates because high interest rates __________.

Business
1 answer:
Dafna1 [17]3 years ago
8 0
I believe that the answer is... increase the cost of credit purchases
You might be interested in
What happens to the cost of foreign goods when the dollar is strong?
-Dominant- [34]
The cost of foreign goods rises briefly,then falls
4 0
2 years ago
Read 2 more answers
A country is in the midst of a recession with real GDP estimated to be $4.5 billion below potential GDP. The government's policy
VARVARA [1.3K]

Answer:

a. The government needs to increase spending by $0.45 billion and decrease taxes by $0.5 billion.

b. The real GDP will fall short of potential GDP by $3.6 billion.

c. The real GDP will fall short of potential GDP by $4 billion.

d. If government overestimates MPC change in spending or taxes will be too small.

Explanation:

The GDP gap is $4.5 billion.

a. The marginal propensity to consume is 0.90.

Government spending multiplier

= \frac{1}{1-MPC}

=  \frac{1}{1-0.9}

= 10

The government needs to increase spending by

= \frac{GDP\ Gap}{Government\ spending\ multiplier}

= \frac{4.5}{10}

= $0.45 billion

Tax multiplier

= \frac{-MPC}{1-MPC}

= \frac{-0.9}{1-0.9}

= -9

The government needs to decrease taxes

= \frac{GDP\ Gap}{Tax\ multiplier}

= \frac{4.5}{9}

= $0.5 billion

b. The marginal propensity to consume is 0.50.

Government spending multiplier

= \frac{1}{1-MPC}

=  \frac{1}{1-0.5}

= 2

If the government  increases spending by $0.45 billion,

The real GDP will increase by

= Increase\ in\ spending\ \times\ Spending\ multiplier

= \$ 0.45\ \times\ 2

= $0.9 billion

The real GDP will fall short of potential GDP by

= $4.5 billion - $0.9 billion

= $3.6 billion

c. Tax multiplier

= \frac{-MPC}{1-MPC}

= \frac{-0.5}{1-0.5}

= -1

If the government decreases taxes by $0.5 billion

The real GDP will increase by

= $0.5\ billion\ \times 1

= $0.5 billion

The real GDP will fall short of potential GDP by

= $4.5 billion - $0.5 billion

= $4 billion

d. If the government overestimates the value of the MPC, then its change in spending or taxes will be too small and real GDP will fall short of potential GDP.

4 0
3 years ago
HELP!! : Could a sales representative easily translate his or her skills into being a buyer? What would be
Lunna [17]

Answer:

Yes, a sales representative can translate his skills into being a buyer

Explanation:

A sales representative is one who completes a sale of a product in a direct or face to face interaction with the buyer.

Skills of a good sales representative includes:

1. Product knowledge

2. Strategic prospecting skills

3. Active listening

4. Communication

5. Good time management

A sales representative can convert all these skills listed above into becoming a better judge of a product as a buyer and in relation with other sales representatives.

One of the challenging thing about the shift would be the ability to trust another sales representative's words about a product or service.

The skill that would translate seamlessly would be product knowledge because if a sales rep already have a good knowledge of a product before it would greatly enhance his choices when choosing one for himself.

3 0
3 years ago
Sage Company had cash receipts from customers in 2020 of $137,920. Cash payments for operating expenses were $84,990. Sage has d
Triss [41]

Answer:

sales revenue for the period: $  143,900

operating expenses:               $   78,000

Explanation:

We solve for sales using the account recievable identity:

beginning account receivable + sales - collection = ending account receivable

12,330 + sales - 137,920 = 18,310

sales = 137,920 + 18,310 - 12,330 = 143,900

Then, for operating expenses, we have a prepaid expenses thus unexpired and therefore, not expenses under accrued accounting.

we solve like this:

beginning prepaid expenses    19,800

payment on expenses              84,990

total expenses payment          104,790

We now subtract the prepaid (unexpired) to get the amount accrued for the period:

104,790 - 26,790 = 78,000

4 0
3 years ago
Maxie's Game World sold games to a customer on credit for $2,600, terms 1/10, n/30 and the cost of the games was $1,700. When re
aleksandrvk [35]

Answer:

$2,600 in the Accounts Receivable Dr./Sales Cr. column and $1,700 in the Cost of Goods Sold Dr./Inventory Cr. column.

Explanation:

If we assume that Maxie's Game World uses a perpetual inventory system, the appropriate journal entries should be:

Date XXX, merchandise sold on credit to client YYY, terms 1/10, n/30

Dr Accounts receivable 2,600

    Cr Sales revenue 2,600

Dr Cost of goods sold 1,700

    Cr Merchandise inventory 1,700

7 0
3 years ago
Other questions:
  • More and more companies are increasing their interactive marketing budgets. most of this investment will be made in:
    5·1 answer
  • The practice of building ties to customers based on a salesperson's attention and commitment to customer needs over time is refe
    14·1 answer
  • If you were given a personality test as part of an employment application process, would you answer the questions honestly or wo
    10·2 answers
  • Which theory suggests that employees can be motivated by objectives that are specific and challenging but achievable and that ha
    9·1 answer
  • Which is the preferred strategy when a company's competitive advantage is based on technology and the company wishes to enter th
    8·1 answer
  • When is a door not a door?
    14·1 answer
  • Charlotte's Crochet Shoppe has 10,700 shares of common stock outstanding at a price per share of $63 and a rate of return of 11.
    15·1 answer
  • A fixed asset with a cost of $41,000 and accumulated depreciation of $36,500 is traded for a similar asset priced at $60,000. As
    6·1 answer
  • Journalizing Transactions Monroe Company rents and sells electronic equipment. During September, Monroe engaged in the transacti
    11·1 answer
  • If a broker receives a due diligence fee from a buyer under the north carolina standard offer to purchase and contract, when can
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!