Answer:
B and C only.
Explanation:
The options of this question wasn't provided. Here are the options:
A.
higher real interest rate induces more investment.
B.
higher real interest rate discourages current consumption.
C.
higher real interest rate encourages more saving.
D.
all of the above.
E.
B and C only.
It is assumed that households either spend disposable income on consumption or savings. If interest rate is high, it would encourage households to save instead of spending on consumption. The same argument extends to firms.
This explains why the credit supply curve is upward sloping or positively sloped, the higher the interest rate, the higher the savings rate and the higher the credit supply. Conversely, the lower the interest rate, the lower the savings rate and the lower the credit supply.
I hope my answer helps you
Answer:
Explanation:
The journal entry is shown below:
Cash A/c Dr $768,000
Service Charge Expense A/c $32,000
To Accounts Receivable A/c $800,000
(Being the cash is received and the remaining balance is debited to the cash account )
The computation of the service charge expense is shown below:
= Accounts Receivable × service charge percentage
= $800,000 × 4%
= $32,000
Answer:
22%
Explanation:
Net income = Annual cash flow - Depreciation
Net income = 24350 - (80,000-5,000 / 5)
Net income = 24350 - 15,000
Net income = $9350
Average investment = Beg. value + End. Value / 2
Average investment = 80,000 + 5,000 / 2
Average investment = $42,500
Annual rate of return = Net income / Average investment * 100
Annual rate of return = $9350 / $42,500 * 100
Annual rate of return = 0.22 * 100
Annual rate of return = 22%
Answer: Continuous innovation
Explanation: Continuous innovation as the name suggest, means the ongoing process of innovation on a particular product or industry with slight changes in each and every stage.
The minor innovations in the latest technology overtime is called continuous innovation. Automobile and mobile phones sector are industries depicting continuous innovation.
