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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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Fore Farms reported a pretax operating loss of $137 million for financial reporting purposes in 2021. Contributing to the loss w
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Answer: Hello your question is incomplete attached below is the complete question

answer:

1) attached below

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4 0
2 years ago
Bramble Company typically sells subscriptions on an annual basis, and publishes six times a year. The magazine sells 102000 subs
nirvana33 [79]

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Cash 60,000 subscriptions * $15   $900,000

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Disclaimer:-your question is incomplete, please see below for complete question.

a. Cash 900,000 Unearned

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1 year ago
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