Answer:
d. $36,000
Explanation:
In this question, we use the proportionate method to find out the salary in 2003 which is shown below:
= Salary in 1974 × (Price index in 2003 ÷ price index in 1974)
= $10,000 × (180 ÷ 50)
= $10,000 × 3.6
= $36,000
We considered the 1974 salary, the price index is 2003 and the price index in 1974 to find out the accurate salary of 2003
A rightward shift of the investment demand curve will suggest an increase in demand. The reasons for this shift in the right would depend on the situation of the economy. The shifting of the curve may be affected by the following:
1. Level of economic activity
The increase in production would increase the demand thus the curve will shift to the right.
2. Expectations
T<span>he forecasting would also affect the shifting of the curve since they may have forecasted </span>an increase sale<span> of the company</span>
3. Capacity utilization
The larger the utilization of the capacity of the stocks, the larger would be the demand.
4. Cost of capital goods
T<span>he cost of constructing or producing capital would also affect the investment demand since investors would always look at the potential returns.</span>
Answer:
Explanation:
Foreign aid and national borrowing are some of the ways in which a country can be assisted financially. According to countries offering financial assistance, it is a form of investment while to the countries at the receiving end, it is a source of capital. For it to be a win-win situation, projects emerging from the capital should be contracted with the granting country as a form of appreciation.