<u>Solution and Explanation:</u>
Since interest rate is the cost of borrowing, lower interest rate decreases the cost of borrowing for housing mortgage, which increases demand for housing.
It is very much clear from the demand and interest rate have a certain relationship. If the interest rate on a particular amount is lower then the customers will try to get more amount as the cost on such amount will be less which means the burden on the customers would be lower.
Answer: Option A
Explanation: In simple words, real GDP refers to the macroeconomic measures under which the Economist adjust the GDP for the price change over time.
Under such a GDP, the economist tries to find out the volume of output increase rather than the value of the output increase by adjusting the produced commodities for the inflation.
Hence the correct option is A.
Answer:
$6,707
Explanation:
Calculation to determine what Universal Travel Inc. should report interest payable at December 31, 2021,
Interest payable at Dec 31,2021= 503,000 * 8% * 2 months/12 months
Interest payable at Dec 31,2021= $6706.6
Interest payable at Dec 31,2021= $6707 Approximately)
(November 1 - December 31 = 2 months)
Therefore Universal Travel Inc. should report interest payable at December 31, 2021, in the amount of $6,707
Revolves around spending, saving, and borrowing!
Answer:
decrease the demand for good A.
Explanation:
Under the cross price elasticity of demand, there are two goods i.e substitute goods and the complementary goods.
The substitute goods shows the positive relation between the price of good B and the demand of good A. That means if the price of good B decreases. then the demand of good A is decreases and vice versa
Whereas, in the case of complimentary goods, it shows a negative relation between the price of good B and the demand of good A. That means if the price of good B decreases. then the demand of good A is increases and vice versa