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3 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]3 years ago

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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:

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Quick Ratio = Quick Assets / Current Liabilities = 23,700 / 17,900 = 1.32

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Cash Ratio = (Cash + marketable securities) / Current Liabilities = 7,800 / 17,900 = 0.4357 or 0.44

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