All categories

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

When we say that the classical model of decision-making specifies how managers should make decisions, this is another way of say

Leya [2.2K]

I would say the if the classical model of decision-making specifies how managers should make typical decisions then I would call this form of decision making prescribed or meaning it is already worked out for typical decisions so that would take the pressure off these managers.

8 0

3 years ago

Five years ago, Alicia invested $10,000 at 5% interest. How much less money would she have today if she had invested the money a

Strike441 [17]

Answer:

$596.29 less

Explanation:

A = P(1+r)^n

P = $10,000

n = 5 years

If she invested at 5%, r = 5% = 0.05

A = 10,000(1+0.05)^5 = 10,000 × 1.05^5 = $12762.82

If she invested at 4%, r = 4% = 0.05

A = 10,000(1+0.04)^5 = 10,000 × 1.04^5 = $12166.53

Amount of money she would have less if she invested at 4% instead of 5% = $12762.82 - $12166.53 = $596.29

3 0

3 years ago

A company is trying to decide which product to manufacture. The following information is available: Costs Product A Product B Di

Art [367]

Answer:

Direct Labor

Explanation:

Direct labor cost is irrelevant to decide product A or product B because it is indifferent for both the product. direct labor cost will remain same in both the options.While Direct material 1,2 and 3 are different in both the option.

7 0

3 years ago

You created a financial model for a pitchbook being presented tomorrow to a potential new client. While reviewing the final vers

sashaice [31]

Explanation:

A pitchbook is confidential document. It is basically a sales document, used by the sales force, which contains main features or attributes of the firm, the potential of the firm and the future aspects of the firm in detail.

So keeping the given question in mind, I would write to my supervisor as follows:

Subject: Assistance Required

Body:

Dear Sir,

By reviewing the whole document finally, which is to be presented to the client tomorrow, I found some mistakes in the results. I came to know that the results are incorrect and are surely needed to be corrected before the presentation.

I recommend you to delay the meeting for 3 hours by the scheduled time, as i need to check and correct the whole figures again and this would take time.

I am looking forwards for your advice.

Best Regards

6 0

3 years ago

Lonergan, Inc., a calendar year S corporation in Athens, Georgia, had a balance in AAA of $200,000 and AEP of $110,000 on Decemb

Finger [1]

Answer:

Explanation:

AAA AEP

Beginning balance, 1/1/20 200,000 110,000

Less: Distributions (140,000) (0)

Less: Loss (ordinary) (120,000) (0)

Ending Balance (60,000) 110,000

Here AAA is adjusted first for the distributions and then for the loss. The negative balance must be restored to a positive before the shareholders may receive any distributions that will not be taxed as dividend income.

6 0

3 years ago