Answer: Demand will fall, Interest rates will fall
Explanation:
The investment tax credit would have encouraged more companies to seek loanable funds in order to embark on investment opportunities because they would be taxed less. This increase in demand in the market for loanable funds would have led to rates rising to keep up with demand.
If Congress were to end this credit, the incentive to invest and avoid tax would be gone. Companies would therefore demand less loanable funds and with this drop in demand there will be a drop in interest rates as well to entice people to borrow at the lower rates.
Answer:
A.rose making the interest rate fall
Explanation:
According to the liquidity preference theory developed by John Keynes, if the money supply rises, price level also rises, interest rate falls. If interest rate falls, the price of bond rises which would increase capital gains. People would prefer to hold bonds instead of money, therefore, investment spending would rise.
The liquidity preference theory states that we hold money for transactive, speculative and precautionary motives.
Answer:
lower prices for consumers and higher prices for producers
Explanation:
the options to this question wasn't provided . Here are the options:
higher prices for consumers and producers lower prices for consumers and producers higher prices for consumers and lower prices for producers
lower prices for consumers and higher prices for producers
A subsidy is when the government pays an individual or a firm directly or indirectly. It could be in the form of direct cash payment, tax breaks or grants. Subsidies are usually given to encourage the production of goods and services.
Subsidy on agricultural goods reduces the price paid for agricultural goods and increases supply of goods. It would increase the price earned by producers.
I hope my answer helps you
Answer:
The correct answer is B
Explanation:
Decentralized is the process in which the power, functions are distributed or dispersed from the central location or authority to the lower level of the management.
So, in a organization or company which is decentralized where lower level managers are empowered for taking a decision leads to increase in the motivation as well as the job satisfaction of the employees.
Answer:
The correct option is E,Ted's annuity has a higher present value than Allison's
Explanation:
Both annuities do not have equal amount today as $1000 received today is higher in value terms than $1000 receivable in a month's time since cash receivable earlier is much more valued than the one receivable later.
Ted's annuity is an annuity due not an ordinary annuity
Allison's annuity is an ordinary annuity not annuity due
Allison's annuity has a lower present value than Ted's and not the other way round.
The only correct statement is option E,since Ted is expected to receive $1000 today, his annuity has a higher present value compared to Allison's
