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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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jeka57 [31]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

6 0
3 years ago
An increase in the quantity supplied can result from
QveST [7]
The only factor that can cause a change in quantity supplied is price, so increase in Qs results from a change in supply price.
4 0
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Explain the method of bookkeeping ?​
Mariulka [41]
The two main accounting methods are cash accounting and accrual accounting. Cash accounting records revenues and expenses when they are received and paid. Accrual accounting records revenues and expenses when they occur. Generally accepted accounting principles (GAAP) requires accrual accounting.
3 0
3 years ago
While everyone's personal financial goals will be unique to their situation, the means for achieving them will be similar. What
MrRa [10]

Answer:

increase their savings

Explanation:

Saving is the action of putting aside a portion of income in a safe place instead of spending.  It is a technique that firms and individuals use to achieve their financial objectives. Consistent saving for a duration of time helps accumulates a substantial amount of money that can be used to actualize financial objectives.

While savings is not the financial objective, it is a means to achieve the actual goal. For Example, if one goal is to own a home or a car, they start saving for the down-payment. Saving helps achieve their long term goals.

7 0
3 years ago
Mike's is a highway construction company. Mike's is laying a highway through the mountains in West Virginia. At one spot they ha
dexar [7]

Answer:

win based on strict liability

Explanation:

Strict liability is a liability that is imposed on party by the claimant that proves that an action occurred and the defendant is responsible for it.

This provision does not require the claimant to prove a fault by the defendant. It is mostly used when an action is considered dangerous.

In this scenario Mike was blasting some holes in rocks. This is a dangerous activity that can cause harm.

Myra who broke her legs in the explosion only needs to prove Mike was responsible for the explosion that occurred for her to win based on strict liability provision.

8 0
3 years ago
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