<u>Answer:
</u>
The interest rate effect explains why the aggregate demand curve is downward sloping.
<u>Explanation:
</u>
- The interest rate effect proposed by Keynes suggests the reasons for why is the aggregate demand curve downward sloping.
- It states that, when the interest rates are low, people choose to invest owing to the decreased costs of investment. This investment stimulates a drop in the levels of price.
- The dropped prices thus increase the aggregate demand for the commodities of which the price has dropped.
Individuals, corporations, and economies specialize because the opportunity cost of producing goods and services differs from country to country, business to business, and individual to individual.
Persons, Corporations, and Economies are bound to specialize in the production of goods and or services in which they hold a stronger comparative advantage than their competition.
<h3>What is comparative advantage?</h3>
This is defined as the ability of an individual, corporate entity, or national to perform an economic activity more efficiently or at a lower (opportunity cost) than the other.
Examples of economic activities are:
- Resource management
- production of services and goods
- distribution of services and goods
- consumption of services and goods
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brainly.com/question/7045530
Answer:
700 units
Explanation:
Calculation for the what the size of the order will be.
Using this formula
Unit to sell= Total additional fixed costs + desired profit / Contribution margin per unit=
Let plug in the formula
Units to sell=$550 + $850 / (8-6)
Units to sell= $1,400/2
Units to sell=700 units
Therefore the size of the order will be 700 units
Answer:
a. Accumulated Depreciation is used to reveal the value of the related asset on the date of the balance sheet.
Explanation:
"Accumulated depreciation is the total amount an asset has been depreciated up until a single point. Each period, the depreciation expense recorded in that period is added to the beginning accumulated depreciation balance. An asset's carrying value on the balance sheet is the difference between its historical cost and accumulated depreciation. At the end of an asset's useful life, its carrying value on the balance sheet will match its salvage value."
Reference: Tuovila, Alicia. “Accumulated Depreciation Definition.” Investopedia, Investopedia, 18 Oct. 2019