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choli [55]
3 years ago
11

Economist A believes that the elasticity of investment is 1.47 while economist B believes that the elasticity of investment is 0

.76. Which economist, A or B, is more likely to believe that a change in the interest rate will change the current economic environment?
Business
1 answer:
Anna71 [15]3 years ago
8 0

Answer:

Economist A

Explanation:

Elasticity is a measure of investment sensitivity. If the investment is elastic, a slight increase in price (interest rate) will decrease the amount of investment. Conversely, if the investment is inelastic, a change in interest rates will not considerably affect the investment rate. The calculation of elasticity consists of the change in the investment rate divided by the change in the interest rate. If the calculation of elasticity is less than 1, it is considered ineastic, while investments with elasticity above 1 are considered elastic. Thus, economist A believes that the investment rate is elastic to the interest rate, while economist B believes the opposite. So for economist A the rise in interest rates will affect the investment rate of the economy (and hence the macroeconomic environment) because in his view investment is elastic. Economist B does not believe that interest rate fluctuations will affect demand for investments.

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sdas [7]

Answer:

The correct answer is letter "A", "B", "C", and "D".

Explanation:

Direct response messaging aims to provide customers with a clear response to a claim or concern they have. First, the letter is replied with the same subject of the previous correspondence to demonstrate the case is being followed. Then, all <em>relevant information is provided at the beginning </em>of the letter. The <em>questions or doubts of the customer must be answered in the order asked</em>. If necessary, <em>graphics can be used to help customers understand easier</em>. Finally, <em>the letter must have a forward-looking statement in the closing</em> showing willingness to provide further help if needed.

6 0
3 years ago
Harris Company manufactures and sells a single product. A partially completed schedule of the company’s total costs and costs pe
Fynjy0 [20]

Answer:

Instructions are lsited below

Explanation:

We don't have enough information to resolve with numbers. But I will leave the formulas necessary to resolve.

The general structure of an income statement proceeds as follow:

Revenue/Sales (+)

Cost of Goods Sold (COGS) (-)

=Gross Profit

Marketing, Advertising, and Promotion Expenses (-)

General and Administrative (G&A) Expenses (-)

=EBITDA

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=Operating Income or EBIT

Interest (-)

Other Expenses (-)

=EBT (Pre-Tax Income)

Income Taxes (-)

=Net Income

A Contribution Margin Income Statement is a special format of the income statement that segregates the variable and fixed expenses involved in running a business. It shows the revenue generated after deducting all variable and fixed expenses separately.

Sales=

Variable costs:

Cost of good sold=

Sales commissions=

Shipping expense=

Total variable cost=

Contribution margin=

Fixed costs:

Advertising expense=

Shipping expense=  

Administrative salaries=

Insurance expense=

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5 0
3 years ago
Suppose that in 2010, the producer price index increases by 1.5 percent. as a result, economists most likely will predict that?
DiKsa [7]

Suppose in 2010, the producer price index increases by 1.5 percent. As a result, the economists are most likely to predict that the consumer price index will increase in the future.

The producer price index is used in order to measure inflation from the perspective of costs to industry. Thus, the producer price index measures the cost of a group of goods and services which are purchased by firms.

Whereas the consumer price index refers to an average of the prices received by producers of goods and services at all the stages of the production process. Thus, when the producer price index increases by 1.5 percent, this is the indication that consumer price index will increase in the future.

Hence, higher producer prices means that consumers will pay more when they buy.

To know more about producer price index here:

brainly.com/question/6335529

#SPJ4

3 0
2 years ago
The final task in designing a management information system (mis) is _____.
Gnoma [55]

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6 0
3 years ago
. Fixed costs are costs that remain the same in total dollar amount as the activity base changes. vary with the costs of the act
Phoenix [80]

Fixed costs are costs that remain the same in total dollar amount as the activity base changes. vary with the costs of the activity. Read below on fixed costs.

<h3>What are fixed costs?</h3>

Fixed costs are costs that remain the same in total dollar amount as the activity base changes. Cost per unit changes inversely to changes in the activity base. Total cost remains the same regardless of changes in the activity base.

Therefore, the answer is option A. vary with the costs of the activity.

learn more about fixed costs: brainly.com/question/3636923

8 0
2 years ago
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