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nekit [7.7K]
3 years ago
9

Suppose that consumption decreases. What is the effect on investment and real interest rate? Analyze using graphs. Briefly descr

ibe.
Business
1 answer:
Talja [164]3 years ago
8 0

Answer:

Interest rates and investment

If interest rates are increased then it will tend to discourage investment because investment has a higher opportunity cost. With higher rates, it is more expensive to borrow money from a bank. Saving money in a bank gives a higher rate of return.

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On May 31, 2018, the Arlene Corporation adopted a plan to sell its cosmetics line of business, considered a component of the ent
asambeis [7]

Answer:

$800,000

Explanation:

The calculation of book value of the assets of the cosmetics component is given below:-

Gain on Sale of the Assets = Income from Operation of a Discontinued Components - Income from Operations

= $620,000 - $300,000

= $320,000

Gain/Loss on Sale of Asset = Sale Value of Assets - Book Value of Assets

= $1,120,000 - $320,000

= $800,000

5 0
3 years ago
The gross requirements of a given component part are determined from ______________________.
il63 [147K]

Answer: The correct answer is "c) planned orders of the parent".

Explanation: The gross requirements of a given component part are determined from <u>planned orders of the parent</u>

Without the release of planned orders from immediate parents, the gross requirements of a given component part could not be determined.

5 0
3 years ago
Identify the correct statement. Select one: a. During a recession, investment increases while consumption decreases. b. During a
lesantik [10]

Answer:

Option C: Annual variations in investment are larger than annual variations in consumption

Explanation:

Investment

This is simply the act of buying or purchase of assets with the sole aim of increasing future income.

Investment risk

This is simply known as the likelihood of an investment will fail to pay the expected return or fail to pay a return at all.

Portfolio diversification

This act so as to limit the risk by spreading investment money among a wide range of investment tools.

Rate of return

This is simply known as the total return on an investment usually in percentage of the amount of money put into the investment.

8 0
3 years ago
A specialized area of management involving all the activities needed to convert or transform resources into goods and services i
MA_775_DIABLO [31]

Answer:

d. operations management.

Explanation:

Operation management is multidisciplinary in nature , whose main purpose is to manage the company's resources such that they produce the highest degree of efficiency for the company. It involves controlling the processes of production, allocating resources in order to produce the final good or services. In this case the given description is of operations management.

8 0
3 years ago
An investor who was not as astute as he believed invested $276,500 into an account 9 years ago. Today, that account is worth $21
Dimas [21]

Answer:

The annual rate of return is -2.83%

Explanation:

The annual rate can be calculated from the formula FV=PV*(1+r)^N

Where FV is the future value of the investment

PV is the amount invested which is $276,500

N is 9 years

213600=276,500*(1+r)^9

213600/276500=(1+r)^9

divide index on both sides by 9

(213600/276500)^1/9=1+r

(213600/276500)^1/9-1=r

r=-0.02827109

r=-2.83%

Hence the annual rate of return on the investment is -2.83%, which means the investment depleted by 2.83% from initial invested amount of $276,5000 to $213,600 after nine years

6 0
3 years ago
Read 2 more answers
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