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laiz [17]
2 years ago
10

Changes in the equilibrium interest rate will Group of answer choices . affect both the size of the domestic output and the allo

cation of capital goods among industries. . affect the allocation of capital goods among industries but not the size of the domestic output. affect the size of the domestic output but not the allocation of capital goods among industries. . have no perceptible effect on either the size of the domestic output or the allocation of capital goods among industries.
Business
1 answer:
vodomira [7]2 years ago
6 0

Answer:

Changes in the equilibrium interest rate

  • affects both the size of the domestic output and the allocation of capital goods among industries.

Explanation:

Changes in interest rates affects the demand for goods and services and, thus, aggregate investment spending. A decrease in interest rates lowers the cost of borrowing, which encourages industries to increase investment spending.  

The aggregate demand is determined by consumption demand and investment demand. When the rate of interest falls the level of investment increases and vice versa

An increase in the equilibrium interest rate affects demand for money. This increase in demand raises the equilibrium interest rate.

Households and businesses then try to decrease their cash holdings by purchasing bonds affecting both the size of the domestic output and the allocation of capital goods among industries.

The equilibrium interest rate changes with the economy and monetary policy.

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Country A has an absolute command economy. Country B has a mixed economy and a population that favors market trade. Both want to
inna [77]

Answer:

D) Permit limited private ventures

Explanation:

An absolute command economy will not permit limited private ventures since it is practicing a socialist or communist political and economic system. In a socialist system all means of production is controlled by the state and liberty to private enterprise is restricted.

8 0
3 years ago
Universal containers has an extensive distributor and reseller community. to help manage this partner network, the company is im
JulijaS [17]
<span>Partner users should be able to own account and opportunities. This will make the partner users feel valued and involved. The sharing model should also be checked and assessed when the partner portal is turned on. This is done to make sure the model is correct and well adjusted to the partner portal.</span>
4 0
2 years ago
Say the marginal tax rate is 30 percent and that government expenditures do not change with output. Say also that the economy is
Nat2105 [25]

Answer: $0

Explanation:

The cyclical deficit occurs when there is a different between the actual output and the potential output. This is why it is calculated by the formula:

= Tax rate * ( Potential output - Actual output)

As the economy here is at the potential output, it means that both the actual and the potential output are the same. In such a case, there would be no cyclical deficit.

This can be proven by the formula:

= Tax rate * ( Potential output - Actual output)

= 30% * (0)

= $0

7 0
2 years ago
Over the course of a year, the Mexican peso has depreciated relative to the U.S. dollar. Who would MOST benefit from this occurr
Norma-Jean [14]
The correct answer of the given question above is option B. Over the course of a year, the Mexican peso has depreciated relative to the U.S. dollar and the one who would most benefit from this occurrence is the U.S consumers of Mexican goods. As the value of the U.S. dollar has increased relative to the peso, the buying power of the U.S. dollar has increased in Mexico. Hope this answer helps.
8 0
3 years ago
Read 2 more answers
In the year 2000, McDonald's was running a game called Monopoly. For every item you purchased at the restaurant, you earned a ti
mamaluj [8]

Option a - $ 1000000 in one instalment

Option b - $100000 to be paid annually during 15 years, starting with one instalment at the year 2000

Interest rate = 10%

Which option would a savvy financial investor prefer

PV of Option a = 1000000 * 1 = $ 1000000

PV of option b = 100000 * PVIFA(10%,15)

PV of option b = 100000 * 7.6060795 = $ 760608

The PV of option a is higher, hence prefer the option a

Learn more about financial investor here brainly.com/question/25572872

#SPJ4

5 0
2 years ago
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