The correct answer is false.
It is false that the slope of the investment demand function indicates how sensitive investment is to changes in real interest rates. The 'steeper' the investment demand function, the less sensitive investment is to changes in the real rate of interest, all else constant.
We can say that the downward slope is the consequence of several reasons. For instance, the concept that money, its nominal value, is fixed. However, the real value of money depends on the level of prices. So the demand for money is related to the demand for it. The interest rate falls when the price level falls.
Answer:
a. Tyler says his costs are $25,900, and Greg says his costs are $66,500.
Explanation:
We know accounting cost is the expenditure made on ingredients by the company which is, $25000 that Walter paid for supplies last year. Walter also paid 3 % interest to his uncle,
Interest to the uncle = (30000*3)/ 100
= $900
total accounting cost that an accountant quotes = 25000 + 900
= $25,900
According to the economist explicit cost is $25900. We also include implicit cost in it. If Walter would not be a business then he would be earning $40000 as teacher and $600 interest from savings bank account.
total economic cost according to economist = 25900 + 40000 + 600
= $66,500
Xerox immediately recognized revenue from long-term leased contracts on copiers, rather than recognizing it over the lease term. This is an example of (c) <u>Aggressive revenue recognition </u>
Explanation:
<u>Xerox immediately recognized revenue from long-term leased contracts on copiers, rather than recognizing it over the lease term. The company falsely drive up its stock prices, Xerox defrauded its investors by making them believe that that the financial position of the company was much more than what is being reflected or showed and Xerox were eventually charged and forced to pay a fine in excess of $10 million by the S.E.C</u>
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The four condition for recording up the sale by SEC are
- Persuasive evidence of an arrangement exists
- Delivery has occurred or services have been rendered
- The seller's price to the buyer is fixed or determinable
- Collectibility is reasonably assured
Answer:
lack of consumer safety
Explanation:
One of the biggest unethical practices that occur during the innovation process is lack of consumer safety. The entire idea of the innovation process is to try and create something truly functional that has not been done before and release it way before any competitor can create a similar product. In this rush to create the product, producers completely ignore many obvious faults that the product may have and/or any dangers it may pose to the consumer as long as the product works as intended.
I believe the answer is: c. interest rate
In mortgage we let an orgniazation (such as bank) to took ownership of a certain property that we want. We then pay the organisation with a certain amount of payment plus interest, and the ownership would be transferred to us after we complete all of the payment.
In this process, interest rate is the profit that the organization would take for their service. As the interest rate become lower, the amount of mortgage price would typically increased, and vice versa.