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Sonbull [250]
3 years ago
7

If the substitution effect of the real interest rate on saving is larger than the income effect of the real interest rate on sav

ing, then a rise in the real interest rate leads to a ________ in consumption and a ________ in saving, for someone who's a lender.
Business
1 answer:
Kay [80]3 years ago
3 0

Answer:

rise, fall

Explanation:

In the case when the subsitution effect with respect to the real rate of interest should be saved and more than the income effect on the real rate of interest so if there is an increased in the real rate of interest so there is an increase in the consumption also there is the fall in the savings

Also, if there is a more income effect, the consumption should rise and the savings would decline

Therefore the rise and fall should be considered to fill the blanks

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Balance sheet and income statement data indicate the following: Bonds payable, 6% (issued 2000, due 2020) $1,200,000 Preferred 8
9966 [12]

Answer:

The correct option is A,5.72 times

Explanation:

The number of times that interest charges gives a sense of how financial stable is in its ability to pay interest on bonds as at when due.It is key consideration for prospective bondholders when assessing whether to buy bonds in a particular company

Number of times interest charges earned=net income before interest/interest

net income before interest charges=net income+interest charges

net income is $340,000

interest charges=$1,200,000*6%=$72,000

net income before interest charges=$340,000+$72,000=$412,000

number of times interest was earned=$412,000/$72,000=5.72

4 0
3 years ago
Give a real life example of mitigating a risk, avoiding a risk, transferring a risk and retaining a risk.
nikitadnepr [17]

Explanation:

Let us understand the terms with examples:

Avoiding a risk: A risk which is pre-identified and which would create huge loss for the ongoing task can be avoided.

For example:

If there is a deadline for a project and there are only few more days to complete, then planning a training program on soft skill will be a riskier one. So training program can be planned sometimes later, thus avoiding risk.

Transferring a risk: Normally this will be mentioned in the project contract. If there is an issue and the employees of the company are already filled with work, then the issue can be outsourced so now the risk is transferred.

Retaining a risk: You can retain the risk if the impact is negligible. Absence of a software developer for 10 days. So the Project manager need not worry about finding an alternate person for that 10 days alone, which might lead to less understanding of flow and may raise more errors if multiple resource work on the content.

Mitigating a risk: The risk will be avoided by taking some preventive measures. For example, if a smart board needs to be sold, a sales team cannot give a good demo hence the sale of product percentage is less. So to avoid this, a training can be arranged to sales team so that it will boost up sales. Others who were absent on training, ll sale less but the impact is minimum.

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3 years ago
When julia goes to the first class of her operations management course, she finds out that in addition to the textbook she alrea
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3 years ago
Which company is most easily able to outsource its operations and have its good or service produced in another country
svet-max [94.6K]

Answer:

d. Queen’s Quilts

Explanation:

Options are "Hannah’s Hair Salons, Busker Baseball Team , Darling Dentistry , Penelope’s Fresh Pretzels , Queen’s Quilts"

a. Salons, Dentistry : these are services which cannot be outsourced partly or fully.

b. Baseball team: It is a sports team which cannot operate partly in another country.

c. Pretzels: These are freshly baked pastries or food items which needs to be made fresh , so cannot be outsourced.

d. Quilts: These are textile which can be produced in countries having cheap labor .

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3 years ago
If all the things we are learning in school where useful why do teachers work at a place that doesn't pay much when they could b
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Answer:

A lot of the times it's because they like teaching. They enjoy it, and they enjoy being around kids.

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3 years ago
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