The major advantage of debt financing is the number of different sources from which it is available amortization benefits.
It is referred to as debt financing when a business takes out a loan that will be repaid with interest at a later time. A secured or unsecured loan could be used to finance it. To finance operating capital or an acquisition, a company will take out a loan.
A party, the debtor, is obligated by a debt to pay another person, the creditor, money or another agreed-upon value. In contrast to an immediate purchase, debt involves deferred payments or a series of payments.
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Answer:
The Solow model basically states that as more rural and backward economies start to develop, they will use more intensively their cheap labor and savings for investment more than already developed nations, and convergence between rich and poor nations will eventually occur.
Explanation:
The Solow growth model is an exogenous model of growth that tries to examine the changes in the level of output in an economy as a result of some changes in the economy. The changing conditions are; population, rate of savings and technological advancement. The Solow model named after Robert Solow who was a Nobel-prize economist winner, formed the foundation for modern theories of economic growth. Solow's growth models has a variety of assumptions as shown;
1. Rate of population growth is constant
2. The proportion of savings in the economy is constant.
3. The same technology is utilized by all companies in the economy for production.
4. The capital accumulation equation forms a relationship between; Present capital stock, future capital stock, the rate of capital depreciation, and level of capital investment.
Solow's model implied that as more rural and backward economies start to develop, they will use more intensively their cheap labor and savings for investment more than already developed nations, and convergence between rich and poor nations will eventually occur.
Answer:
I think the answer is E. The employment rate is 100%
Explanation:
