3 Points

What is the relationship between interest rates and aggregate spending?

Gemiola [76]

Answer:

B. when interest rates increase, aggregate spending decreases

Explanation:

Interest rates and aggregate spending have an inverse relationship. An increase in interest rates results in a decrease in aggregate expenditure. Interest refers to the cost of money, while aggregate spending is the total consumption in the economy.

When the cost of money is high, firms and households will stop borrowing, which reduces spending. It means businesses will not expand, and domestic consumption reduces. The net effect is a lower demand for goods and services, resulting in lower aggregate spending.

3 0

3 years ago

Read 2 more answers

Suppose the Federal Reserve wants to increase the money supply by $200. Again, you can assume that banks do not hold excess rese

Maurinko [17]

Answer: B. The Fed cannot control the amount of money that households choose to hold as currency.

Explanation: If the Federal government wants to control the money supply, they will buy government bonds. For the Fed to pay for the bonds, the Fed will creates money. Its purchase of bonds will put the new money in the hands of the public.

But one thing the federal government cannot control is the amount of money households choose to hold as currency.

6 0

3 years ago

There are five steps involved in segmenting and targeting a market. What should a marketer do once she has developed a market-pr

lora16 [44]

The marketer should select target markets once she has developed a market-product grid and estimated the size of markets.

<h3>What is a target market?</h3>

A target market being a group of customers that a business decides to aim its marketing efforts and ultimately products on. They are potential customers that one wish to sell products or services to.

Target market are the group of people in which the products are made for. The products are specifically tailored to certain set of people.

Hence, the marketer should select target markets once she has developed a market-product grid and estimated the size of markets.

Learn more about target market here : brainly.com/question/20812603

7 0

3 years ago

Adjusting entries: (Select all that apply.) a. are required in cash-basis accounting only. b. are needed before financial statem

Radda [10]

Answer:

Option B and C are correct because adjusting entries arises due to mistakes and errors found in the recording of transactions and this does not arises in the start of the accounting period. It arises in the month ends and interim & final audits. The internal auditors also reviews the financial statements to eliminate all the errors and ommissions in the Financial statement.

Option A is incorrect because adjusting entries are passed both in accrual accounting and cash accounting system.

Option D is incorrect because these adjustments arises at the end of months and year audits.

7 0

3 years ago

Smith Distributors, Inc., supplies ice cream shops with various toppings for making sundaes. On November 17, 2021, a fire result

jeka94

Answer:

Estimated cost of Fruit Toppings lost in the fire = $14,000

Estimated cost of Marshmallow Toppings lost in the fire = $5,300

Estimated cost of Chocolate Toppings lost in the fire = $1,260

Explanation:

Fruit Marshmallow Chocolate

Toppings Toppings Toppings

Inventory, January 1, 2013 [a] 22,000 7,200 3,200

Net purchases through Nov. 17 [b] 160,000 38,000 12,200

Net sales through Nov. 17 [c] 210,000 57,000 20,200

Historical gross profit ratio [d] 20 30 30

Gross Profit [c*d%] [e] 42000 17,100 6,060

Cost of Good Sold [c-e] [f] 168,000 39,900 14,140

Inventory, Nov 17, 2013 [a+b-f] [g] 14,000 5,300 1,260

7 0

3 years ago