Answer:
The interest rate effect is the change in consumer and investment spending due to changes in interest rates resulting from changes in the aggregate price level.
Explanation:
"Changes in interest rates can have different effects on consumer spending habits depending on a number of factors, including current rate levels, expected future rate changes, consumer confidence, and the overall health of the economy.
It's possible for interest rate changes, either up or down, to have the effect of increasing consumer spending or decreasing spending and increasing saving. The ultimate determinant of the overall effect of interest rate changes primarily depends on the consensus attitude of consumers as to whether they are better off spending or saving in light of the change.
"
Reference: Maverick, J.B. “How Do Interest Rates Change Spending Habits in the Economy?” Investopedia, Investopedia, 31 Aug. 2019
Answer:
1. 17.2%
2. 11.1%
Explanation:
In a research study carried out by Fama and French in 1992 titled "The Cross‐Section of Expected Stock Returns." Their findings showed that the stocks of firms within the highest decile of book-to-market ratios had an average annual return of 17.2%, while the stocks of firms within the lowest decile of book-to-market ratios had an average annual return of 11.1%
Hence, the correct answer to the question is: 17.2% and 11.1% respectively.
They should work on structure and how it all comes together
Fixed costs: $251,000
Unit selling price: $22
Unit variable costs: $21
Decrease in variable costs: $5
Break-even = fixed costs/contribution margin
Contribution margin = selling price - unit variable cost
Break-even = $251,000/($22-$21)
Break-even = $251,000
New break-even = fixed costs/[(selling price)-(variable cost-decrease in variable cost)]
New break-even = $251,000/[($22) -($21-$5)]
New break-even = $251,000/$22-$16)
New break-even = $251,000/$6
New break-even = $43,833 units
Answer: True
Explanation: Under the doctrine of "Privity of contract" it is a common law which state that a contract can not confer any right to a person or imposed any obligation upon anyone who is not a party to the contract. only parties involved in the contract are allowed to sue to enforce rights or claims on damages.
It is "true" that Privity of contract refers to the relationship that exists between parties to a contract.