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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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Economists refer to a budget deficit that exists when the economy is achieving full employment as a:cyclically adjusted deficit.
pav-90 [236]

Answer:

The correct answer is: cyclically adjusted deficit.

Explanation:

The cyclically adjusted budget deficit can be defined as the budget deficit that exists when the economy is operating at its full potential or at full employment level.  

It is caused because of economic slowdown and not changes in fiscal policies. The economists use the cyclically adjusted budget to evaluate the effects of fiscal policies.  

When there is a cyclically adjusted budget deficit, the fiscal policy is expansionary.

5 0
3 years ago
Isabel, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December she received
Bumek [7]

Answer:

the after-tax cost of debt is: 27,090

Explanation:

assuming the entire among of the consulting services is tax deductible

we can determinate the after-tax cost as:

expense x (1 - tax rate) =

 43,000 x    (1 - 0.37)    = <em>27,090</em>

<em />

<em>the rate of return of a potential investment is not relevant for this purpose as is paying right away and not giving time to invest in a project to pay the amount next year.</em>

3 0
3 years ago
Read 2 more answers
you normally stay at home on wednesday nights and study. however, next wednesday night, your best friend is having a big birthda
lesya692 [45]

The value of what you forgo in order to attend the party is known as the opportunity cost. due to you Normally studying at home, the advantage of the party outweighs the potential cost (such as a greater that you would have learned from studying that evening (for homework or a test).

<h3>What is meant by opportunity cost?</h3>

In other terms, opportunity cost is the other option or opportunity you must forgo in order to pursue your preferred alternative. It is, to put it simply, what we have to give up in order to act.

For instance, if you attend your friend's birthday celebration, you will undoubtedly miss your preferred study period for the exam the following day. This may result in a gorgeous crimson "F" on your exam paper, which would be a terrible loss. For this reason, sane people who are aware that they are not intelligent enough to review for the test while intoxicated in five minutes typically opt to stay at home and study. The inability to study for your exam in this instance is a lost opportunity.

To learn more about opportunity cost from given link

brainly.com/question/1549591

#SPJ4

3 0
1 year ago
Gianna put $1,000 in a savings account for 18 months. The interest on the account is 3.5%.
Nadya [2.5K]

Answer:

You will earn $52.96 in interest

You have $1,052.96 in total.

6 0
3 years ago
A(n) __________ refers to a complete ban on importing or exporting of products from a specific country
azamat
An embargo refers to a complete ban <span>on the importing or exporting of products from a specific country.</span>
6 0
3 years ago
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