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antoniya [11.8K]
3 years ago
14

Planned investment spending will decrease if: the interest rate rises. consumer expectations about wealth grow more optimistic.

firms expect the growth of real GDP to increase. firms are producing near full capacity.
Business
1 answer:
Dima020 [189]3 years ago
4 0

Answer:

the interest rate rises.

Explanation:

When interest rate increase, borrowing money from the banks become expensive. Individuals and companies will not be able to borrow money to finance investments as the interest rates would be discouraging. When the interest rates are high, saving with banks becomes more attractive. Interests earned of deposits become more appealing than the rate of return of an investment project.

Investments increase when the economy is doing well. If real GDP is to increase or consumers are more optimistic, it means the economy is doing well. Firms operate at near capacity if the economic conditions are favorable. In these three situations, investments will increase, not decrease.

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2 years ago
Russell Preston delivers parts for several local auto parts stores. He charges clients $1.30 per mile driven. Russell has determ
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Answer:

A. Determine how many miles Russell needs to drive to break even?

break even formula = total fixed costs / contribution margin

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B. Assume Russell drove 2,500 miles last month. Without making any additional calculations, determine whether he earned a profit or a loss last month.

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<u>- variable costs                       ($725)</u>

contribution margin              $2,525

<u>- fixed costs                         ($1,220)</u>

net income                            $1,305

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3 years ago
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3 years ago
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Answer:

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3 years ago
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