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2 years ago

What is the process of a decline in interest rates impacts the use of capital and economic growth.

Business

1 answer:

Contact [7]2 years ago

7 0

Answer:

Changes in interest rates can have both positive and negative effects on the markets. Central banks often change their target interest rates in response to economic activity: raising rates when the economy is overly strong, and lowering rates when the economy is sluggish. In economics, capital references non-financial assets used in the production of ... used up immediately in the process of production, unlike intermediate goods ... As a term, it is used to define balanced growth where the goal is to improve human capital ... The interest rate directly impacts economic choices.

Explanation:

Hope this helps!!

You might be interested in

Which of the following is not true about the national income identity given by the equation: S +(T - G) = 1 + CA?

kati45 [8]

Answer:

None of the options are False.

Explanation:

CA means Current Account Balance

T means Taxes

G means Government Spending

S equals National Savings and

I equals Investment

Cheers!

4 0

2 years ago

A proposed project has an initial cost of $38,000 and cash inflows of $12,300, $24,200, and $16,100 for years 1 through 3, respe

In-s [12.5K]

Answer:

IRR is greater than required return by 17.38 - 16.8 % = 0.58 %

so project will accept

Explanation:

given data

initial cost = $38,000

cash inflows year 1 = $12,300

cash inflows year 2= $24,200

cash inflows year 3 = $16,100

rate of return = 16.8 %

solution

we consider here IRR is = x so

present value of inflows is equal to present value of outflows .............1

we can say that it as

initial cost = present value

3800 = $\frac{12300}{1*x} +\frac{24200}{(1*x)^2} +\frac{16100}{(1*x)^3}$

solve it we get

x = 17.38%

here IRR is greater than required return by 17.38 - 16.8 % = 0.58 %

so project will accept

4 0

2 years ago

White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermin

Blababa [14]

Answer and Explanation:

The computation of the predetermined overhead rate is shown below:

For Cutting department

= Variable manufacturing overhead per machine hour + (Total fixed manufacturing overhead ÷ machine hours)

= $2 + ($264,000 ÷ 48,000)

= $2 + $5.50

= $7.50

For finishing department

= Variable manufacturing overhead per direct labour + (Total fixed manufacturing overhead ÷ direct labor hours)

= $4 + ($366,000 ÷ 30,000)

= $4 + $12.20

= $16.20

4 0

2 years ago

An organization has a standing order with a supplier. the organization has ordered the same product in the same quantity monthly

evablogger [386]

Answer:

Modified Rebuy.

Explanation:

Modified Rebuy can be defined as the desires of a buyer to re-purchase or reorder the products previously bought but with certain modifications either in prices, products, suppliers, or terms. The buyer may modify the current purchasing terms because he may not be satisfied with the supplier or may have some new requirements.

In the given case, the modification in supplier has been made by the organization to get a better price. Thus this is an example of modified rebuy.

So, the correct answer is modified rebuy.

7 0

2 years ago

The number of shares that a corporation's incorporation document allows it to sell is referred to as

SashulF [63]

The number of shares that a corporation's incorporation document allows it to sell is referred to as authorized shares.

<h3>What is a Corporation?</h3>

This refers to a business entity that has a group of members who acts together for a set goal.

Hence, we can see that when it comes to the selling of stocks by the corporation, there is a limit of shares to sell and this is known as authorized shares.