Answer:
if you are only picking one the answer is C if you are picking multiple it is B and C
Answer:
C. Most businesses decide to modernize and expand their manufacturing capacity, and to install new equipments to reduce labor cost
Explanation:
Interest rate is the cost attached to borrowed money. It is also the return for the risk of lending.
Businesses borrow to make profit in the future. They also borrow to finance the purchase of equipments. The interest on these loan is what stimulate the economy which encourages people to borrow, lend and spend.
When businesses continue to expand their production capacity and also install new equipment, such will lead to an increase in interest rate in the economy because most industries often times raise credit to finance assets purchase. An increase in demand for money raises interest rate and vice versa.
Other causes of high interest rate in an economy are;
- Inflation, which is the consistent rise in the prices of goods and services as a result of too much money in circulation. The higher the rate of inflation, the higher the interest rate.
-Government, through central bank, issuing directives on the effect of monetary policy on interest rate. This is done through open market operation.
When there is lower interest rate in the economy, amount paid as interest by consumers will be less hence have money to spend. This will also affect business as they will be able to buy equipments and produce more with cheap funds.
Answer:
The answer is: Income statement
Explanation:
As she wants to get information on sales and costs, the Income statement is the statement that she should looking for. With the Balance sheet statement, it only shows information on the financial position reporting the firm's assets, liabilities and owner's equity at a specific point in time rather than the sales and costs firgures during the reporting period.
Furthermore, she should opt for Income statement rather than the common-size income statement because the common-size income statement hardly illustrates any trend during the recent years/ reporting periods, instead, it is only shown each revenue and cost items as percentage of total sales in a specific period.
In the income statement, there should be enough information for the new CFO to find trends on revenues and costs (if any) because the revenue and cost items is detailed enough and at least it should be given the comparision between sales & costs of the reporting period versus the firgures of the previous reporting period.
Answer:
Both goods are originally labor intensive, so we can conclude that the country has a lot of labor resources, while their capital resources should be rather limited. Since the world price of good X increases compared to the price of good Y, then the country will export larger amounts of good X since its price is relatively higher.
Answer:
True.
Explanation:
True, The given situation is true because the pleasure (utility) provided by Alpha is greater than the pleasure (utility) provided by the Beta. Therefore, a rational person will buy only that commodity which has a higher utility. Here, we can see the Alpha provides 10 units of utility or pleasure per dollar while Beta provides 8 units of utility or pleasure per dollars. So, only Alpha will be chosen.
