Answer:
The answer is: C) Investment spending by businesses varies inversely with the interest rate.
Explanation:
This statement is true all the time. When a company evaluates the costs and benefits of an investment, interest rate plays a fundamental part in those calculations. The two basic reasons for that are:
- The higher the interest rate a company (or any individual) has to pay for a loan, the harder it is for the company to repay the loan.
- The interest rate a bank charges is usually correlated to the opportunity cost of an investment. The higher the interest rates banks charge, the higher the internal rate of return (which is used to calculate the Net Present Value of an investment) will be. This is because banks don´t print money, they take in deposits and then they loan the money the someone else. So if the interest rate the bank charges is high, usually the interest rates the bank pays for the deposits is also high. Instead of investing, a company might just put their money on the bank and earn a better return rate.
The lifetime effects of lost wages, benefits, and social security contributions that accompanies taking time out of the workforce to raise children is called the <u>mommy tax</u>.
<h3>What is a
mommy tax?</h3>
A mommy tax is a terminology which was coined by the author Crittenden and it can be defined as the lifetime effects of lost wages, benefits, and social security contributions that a woman experiences by taking time out of the workforce to raise her children.
This ultimately implies that, a mommy tax is used to connote the motherhood penalty which is characterized by severe wage and hiring disadvantages for a woman in the workplace when taking time to raise children.
Read more on mommy tax here: brainly.com/question/1166652
For imports:
You import when there is lack of production in your own country
or when another country offers a cheaper price and/or better quality good than your own country's industry
for exports:
production surplus.
