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laiz [17]
3 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]3 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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What is economic unity
NemiM [27]

Answer:

the state of different areas or groups being joined together to form a single country or organization.

Explanation:

4 0
3 years ago
Determine what the net income or loss Use the business transactions below to: 1. Stockholders invest $40,000 in cash in starting
Angelina_Jolie [31]

Answer:

the question is incomplete, so I looked for a similar one:

Real estate commissions billed to clients amount to $4,000. Paid $700 in cash for the current month's rent. Paid $250 cash on account for office supplies purchased in transaction 2. Received a bill for $800 for advertising for the current month. Paid $2,500 cash for office salaries. Paid $1,200 cash dividends to stockholders. Received a check for $2,000 from a client in payment on account for commissions billed

<u>Income statement</u>

Service revenue                             $4,000

Operating expenses:

  • Rent $700
  • Advertising $800
  • Office salaries $2,500         <u>($4,000)</u>

Net income                                          $0

Accrual accounting recognizes both expenses and revenues when they occur, not when a cash flow is associated to them. E.g. even though only $2,000 were paid by clients, the whole $4,000 must be considered revenue.

7 0
2 years ago
What are 3 examples of things that may be built with Municipal bonds?
Troyanec [42]

Answer:

hospitals, highways, schools

Explanation:

A municipal bond is a type of debt security made by government entities in order to finance <em>capex </em>(capital expenditures), mainly for the construction of hospitals, highways, schools.

They represent loans that investors give to such government entities and they are usually exempt from the usual taxes on building such things.

7 0
2 years ago
Garage Specialty Corporation manufactures joint products P and Q. During a recent period, joint costs amounted to $80,000 in the
goblinko [34]

Answer:

Option B,$62,400 is correct

Explanation:

Firstly,we need to determine the sales of each joint product if sold after the split off point as follows:

Sales value of P=20,000*$2.20=$44,000

sales value of Q=60,000*$2.60=$156,000

total sales value                          =$200,000

joint cost is $80,000

joint cost allocated to Q=total joint cost*Q sales value/total sales value

                                        =$80,000*156,000/200,000=$62,400

Out of the $80,000 joint cost incurred by both joint products,Q would be allocated $62,400

7 0
3 years ago
If you have a team that is low on conscientiousness, which of the following would you recommend?
astra-53 [7]

Answer: E) They need to define the task and maintenance.

Explanation:

Conscientiousness means being thorough and careful in one's task performance. A team that is low on Conscientiousness need to define task and maintenance.

6 0
3 years ago
Read 2 more answers
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