Is the most critical step of the decision-making process?

Changes in the equilibrium interest rate will Group of answer choices . affect both the size of the domestic output and the allo

vodomira [7]

Answer:

Changes in the equilibrium interest rate

affects both the size of the domestic output and the allocation of capital goods among industries.

Explanation:

Changes in interest rates affects the demand for goods and services and, thus, aggregate investment spending. A decrease in interest rates lowers the cost of borrowing, which encourages industries to increase investment spending.

The aggregate demand is determined by consumption demand and investment demand. When the rate of interest falls the level of investment increases and vice versa

An increase in the equilibrium interest rate affects demand for money. This increase in demand raises the equilibrium interest rate.

Households and businesses then try to decrease their cash holdings by purchasing bonds affecting both the size of the domestic output and the allocation of capital goods among industries.

The equilibrium interest rate changes with the economy and monetary policy.

6 0

2 years ago

What is the minimum price per unit that would produce a positive contribution margin? if required, round your answer to two deci

nikdorinn [45]

You need to provide figures for an answer to be calculated.

8 0

3 years ago

For the year, Redder Company has cost of goods manufactured of $600,000, beginning finished goods inventory of $200,000, and end

nevsk [136]

Answer:

finished cost = $200,000

inventory cost=$250,000

manufactured cost= $600,000

cost of good= beginning inventory+purchase during period cost- ending inventory

$600,000+$200,000-$250,000

$550,000

7 0

3 years ago

On January 1, ABC sold $30,000 in products to a customer on account. Then on January 10, ABC collected the cash on that account.

____ [38]

Answer:

Collection of Cash on January 10

The Impact on ABC's accounting equation:

The Assets (Cash) will increase by $30,000 and another type of Assets (Accounts Receivable) will decrease by $30,000.

The collection of cash on January 10 does not affect the other side of the accounting equation.

Explanation:

The accounting equation shows that for every transaction, the Assets will be equal to the Liabilities + Owners' Equity. The explanation is that the financial resources which an entity owns actually belong to either creditors or equity owners in the form of financial obligations (liabilities) or contributed capital plus some parts of the net income over the years which the entity has reinvested in its business.

The accounting equation is the fulcrum of the double-entry accounting system. On a company's balance sheet, the accounting equation shows that assets equal the sum of the company's liabilities and shareholders' equity.

7 0

3 years ago

A vintner is deciding when to release a vintage of Sauvignon Blanc. If it is bottled and released now, the wine will be worth $2

ziro4ka [17]

Answer:

$269,158.88

Explanation:

The computation is shown below:

Before the difference of the amount, first we have to determine the value of the wine after one year which is shown below:

= $2,400,000 + $2,400,000 × 10%

= $2,400,000 + $240,000

= $2,640,000

And, the interest rate is 7%

Plus the additional cost is $360,000

So, the value of the wine now is

= ($2,640,000 - $360,000) ÷ (1 + 0.07)

= $2,130,841.12

So, the difference is

= $2,400,000 - $2,130,841.12

= $269,158.88

3 0

3 years ago