Answer:
Changes in the equilibrium interest rate
- affects both the size of the domestic output and the allocation of capital goods among industries.
Explanation:
Changes in interest rates affects the demand for goods and services and, thus, aggregate investment spending. A decrease in interest rates lowers the cost of borrowing, which encourages industries to increase investment spending.
The aggregate demand is determined by consumption demand and investment demand. When the rate of interest falls the level of investment increases and vice versa
An increase in the equilibrium interest rate affects demand for money. This increase in demand raises the equilibrium interest rate.
Households and businesses then try to decrease their cash holdings by purchasing bonds affecting both the size of the domestic output and the allocation of capital goods among industries.
The equilibrium interest rate changes with the economy and monetary policy.
Answer: why did u delete my answer
Explanation:
Answer:
This type of trade is called Arbitrage trading.
Explanation:
Arbitrage trading a simultaneously selling and buying of financial instruments or entering into various transactions at the same time in at least two different market to make money through the exploitation of price differences.
In this case, because there is price differences between the borrowing market in Japan and deposit market in Australia, the trader can earn profit by borrowing in Japan in yen, converting the amount into AUD and deposit it in Australia to earn 4% per annum profit.
Such scenario exists as a result of market inefficiency. As more and more trader does the same trading, borrowing cost in Japan will be higher ( due to higher demand) and deposit cost in Australia will be lower ( due to higher supply). In the end, market will be efficient and such trading will not lead to any profit gained from price differences.
Answer:
uncollectible accounts expense 28,000
Explanation:
the aging of the accounts receivable is 600,000
AR unadjusted 650,000
We need to adjust by 50,000 to get the net realizable value
allowance: 68,000
written off (46,000)
uncollectible expense <u> X</u>
year end 50,000
68,000-46,000 + uncollectible = 50,000
uncollectible = 50,000 -22,000 = 28,000
Answer:
The econimic is the study of the earth
Explanation:
