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3 years ago

What is the relationship between interest rates and aggregate spending?

Business

2 answers:

baherus [9]3 years ago

4 0

Answer:

when interest rates increase, aggregate spending decreases

Explanation:

I just took the test, good luck everyone

Gemiola [76]3 years ago

3 0

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.

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List the 6 areas of internet

Oxana [17]

Answer:

1. Communication Services.

2. File Transfer.

3. Web Services.

4. Directory Service.

5. Information Retrieval Services.

6. Automatic Network Address Configuration.

Explanation:

I hope it helps! Have a great day!

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2 years ago

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7 0

3 years ago

You have just purchased a new warehouse. To finance the purchase, you've arranged for a 25-year mortgage for 80 percent of the $

Ahat [919]

Answer:

7.67%

Explanation:

Monthly payments from mortgages are calculated with the compounding montly interest rate.

Thus, you can "calculate" the monthly rate and the multiply by 12 to obtain the APR (annual percentage rate).

The equation for the monthly payment is:

$Monthly\text{ }Payment=Loan\times \bigg[\dfrac{r(1+r)^t}{(1+r)^t-1}\bigg]$

Loan = 80% × $1,800,00 = $1,440,000
Monthly payment = $10,800
t = number of months = 25 × 12 = 300

Substitute:

$\$10,800=\$1,440,000\times \bigg[\dfrac{r(1+r)^{300}}{(1+r)^{300}-1}\bigg]$

You must find r but it is very difficult to make it the subject of the equation; thus, the best is to do succesive calculations:

Tests:

r monthyly payment

0.01 $15,166.43 > $10,800 ⇒ lower
0.005 $ 9,277.94 < $10,800 ⇒ increase
0.006 $10,362.08 pretty close; increase a little bit
0.00639059 $10,800 ↔ this is the number

Multiply the rate by 12 (to obtain the APR): 0.00639059 × 12 = 0.07668708 = 7.67%.

APR = 7.67% ← answer

5 0

4 years ago

the state of illinois has a sales tax of 6.25%. susie earns $26,000 per year as a hair stylist and jimmy earns $72,000 per year

pochemuha

The awnser is 38,90 because it really is simple math

3 0

4 years ago

If the nicks were to play against cavs who will win?

Irina18 [472]

Umm, the cavs considering 1:they're better and 2: nicks isn't even a team it's the knicks.

8 0

3 years ago