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solmaris [256]
3 years ago
9

You are considering investing $6,789 at an interest rate of 7.345% compounded annually for 15 years or investing $6,789 at an in

terest rate of 8.123% for 15 years. Which is a better investment option?
Business
1 answer:
zaharov [31]3 years ago
3 0

Answer:

$6,789 at an interest rate of 8.123% for 15 years

Explanation:

As in the question, it is mentioned that there are two investment options who are compounded annually and the invested amount is also the same but the rate of the interest is different. In the first investment option, the rate of interest is 7.345% and in the second option, the rate of interest is $8.123%

The higher rate of interest, the better investment option it was as it gives the highest return as compare to the first investment option

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Investment can be increased both by reducing taxes on private saving and by reducing the government budget deficit.
Romashka [77]

Answer:

1. Increasing

2. A. The elasticity of private saving with respect to the after-tax real interest rate

B. The response of private saving to changes in the government budget deficit

C. The elasticity of investment with respect to the interest rate

Explanation:

1. It is difficult to implement both of these policies at the same time because reducing taxes on private spending has the effect of <u><em>Increasing</em></u> the government budget deficit.

A Government budget deficit is acquired when the government spends more than it earns. The Government earns money from taxes and if it spends more than it receives in taxes, that will lead to a deficit. If taxes on Private spending are reduced, this will lead to less tax revenue for the government thereby increasing the Deficit.

2. All of the listed options are useful in determining which policy would be a more effective way to raise investment.

The elasticity of private saving with respect to the after-tax real interest rate refers to how much private saving changes in reaction to a change in the tax rates. This can enable one decide how much investment will be expected if the Government reduces or increases taxes.

The response of private saving to changes in the government budget deficit is also a useful factor to look at because private savings reduce when government deficits reduce.

Also how much does investment change by due to interest rates. This will be important to note in terms of Private Investment to see if it will be beneficial to use it over reducing the government budget deficit given a certain interest rate.

7 0
3 years ago
When you finish your budget, you should have:
Basile [38]

Answer:

Zero balance

Explanation:

Because you finished all your money.

5 0
3 years ago
Read 2 more answers
When perfectly competitive firm X sells three units of product Z, its marginal revenue is $4.67. When it sells one hundred units
Sedaia [141]

Answer:

<u>A) $4.67</u>

Explanation:

In a perfectly competitive market, marginal revenue always is equal to price.  Also, the price is not determined by the firms, it is given by the market because producers doesn´t have any power of decision in this matter.

Due to that, the price is constant, independent the quantity sold.

8 0
3 years ago
It is necessary for all economic systems to provide people with goods and services and also restrict them from getting as much o
solong [7]

Answer:

The correct answer is: reduce; not as highly valued as others.

Explanation:

All the economic systems must provide people with the goods and services that they want and need. But it is also necessary to limit them from getting as much as they wish.

This is because providing as many goods and services as they want may lead to a reduction in efficiency. Economic efficiency is achieved when resources are allocated in such a way that there is no wastage and resources are allocated to most valued use.

If the economic systems do not restrict the production of goods and services as much as they want it may lead to the production of those goods and services that are not as highly valued as others. This will cause wastage of resources, thus reducing the economic efficiency of the system.

8 0
3 years ago
Which of the following is true about the ethics line
Arturiano [62]

Answer: All of the above

Explanation:

The options include:

a. It's available 24 hours a day, 7 days a week.

b. All reports are handled in a highly confidential manner.

c. You do not have to identify yourself on the call.

d. All of the above.

An ethics line refers to the anonymous on-line system which can be used by an employee to report bad behavior or something unethical or illegal.

Ethics line are typically available 24 hours a day, 7 days a week and reports made are confidential. Therefore, the correct option is "All of the above".

8 0
2 years ago
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