Answer:
1. purchasing
2. Financial.
3. An increase.
4. Economic growth.
Explanation:
Economics can be classified into two (2) categories, namely;
1. Macroeconomics can be defined as the study of behaviors, performance and factors that affect the entire economy. Hence, it focuses on aggregate phenomena such as price level, economic growth, Gross Domestic Product (GDP), inflation, unemployment and national income levels with respect to the central bank, demand or supply shocks, government policies, aggregate spending and savings.
2. Microeconomics can be defined as the study of the effect of price and quantity levels through interactions between individual buyers and sellers in various markets. It focuses on analyzing or evaluating the decisions of consumers (buyers) and those of firms (sellers) such as methods of production, pricing; and the manner in which government policies affect those decisions.
Most people recognize that, as a group, consumers are the pivotal participants in the economy, The purchasing decisions made by consumers determine which goods and services will be produced by businesses, just as their investment and saving decisions will strongly influence conditions in the financial markets.
Another indication of the importance of consumers is the effect their collective spending has on the economic activity level observed in the economy. An increase in the level of consumer spending is usually credited with causing economic growth and all benefits or costs that go with it.
Answer:
Please check explanations for answer
Explanation:
Here, we want to prove that the ROI is not 9 percent per annum
The amount spent buying the item is $800
Now, there is $60 payment per year for 7 years
The total amount received as the total of payment per year after the 7 years will be;
7 * 60 = $420
Now, instead of the $800 paid initially, $1000 was returned as the principal
What this mean is that there is an extra $200 gain including the $420 that was paid earlier
So the total amount of gain on the investment is $200 + $420 = $620
Now, we proceed to calculate the percentage this was, relative to the amount invested
That would be;
620/800 * 100%
= 77.5%
So there was a 77.5% ROI
so the yearly return on this will be;
77.5%/7 = 11.07 which is approximately 11%
So the ROI is 11% and not 9%
Answer:
c. Investment spending by businesses varies inversely with the interest rate.
Explanation:
The relationship described in the question is known as inverse or negative relationship.
An inverse relationship occurs when two variables move in the opposite direction. That is, as variable A increase, variable B decreases. Conversely, as variable A decreases, variable B increases. This different from a positive relationship which occurs when two variables move in the same direction. That is, as variable A increase, variable B too increases. Conversely, as variable A decreases, variable B also decreases.
From the question, a continuous increase in total investment by $10 billion as the interest rate falls successively by 4 percentage point is an example of an inverse or negative relationship. From this, it can also be inferred that total investment will continue to fall by $10 billion as the interest rate rises successfully by 4 percentage point.
Therefore, the verbal statement that "investment spending by businesses varies inversely with the interest rate" is an accurate description of the relationship between the investment and the interest rate.
All the best.
Answer:
B
Explanation:
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Answer:
a. $103,400
Explanation:
As we know that
Cost of goods sold = Beginning inventory + purchases - ending inventory
And,
Gross profit = Sales revenue - cost of goods sold
Since in the question it is given that
The ending inventory and beginning inventory had been overstated by $11,200 and $6,600 respectively
Since overstatement in the initial inventory raises the cost of the goods sold and decreases by that amount the gross profit & net income
And, overstatement in ending inventory reduced cost of goods sold and raised gross profit & net income by that amount.
So for overstated ending inventory the amount should be deducted and for overstated beginning inventory the condition would be reverse
So, the correct amount is
= incorrect pretax net income + overstatement in beginning inventory - overstatement in ending inventory
= $108,000 + $6,600 - $11,200
= $103,400