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ale4655 [162]
3 years ago
15

Assume the economy is operating at less than full employment. An expansionary monetary policy will cause interest rates to _____

___, which will ___________ investment spending.
Business
1 answer:
adoni [48]3 years ago
7 0

When the economy is not at full employment and an expansionary monetary policy is followed:

  • Interest rates decrease
  • Investment spending increases

When there is an expansionary monetary policy in place, more money is pumped into the economy which means that there are more loanable funds. This increase in the supply of loanable funds will decrease the interest associated with them.

As a result of interest rates being lower, more businesses and people will be able to borrow money and invest in projects thereby increasing investment spending.

In conclusion, there will be an increase in investment spending due to a decrease in interest rates.

<em>Find out more at brainly.com/question/2343055. </em>

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Which financial activity helps a company based in another country
Lady_Fox [76]

Answer:

The correct answer is A

Explanation:

The financial activity is that activity which is undertaken by companies in order to accomplish their economic objectives and goals.

FDI (Foreign direct investment), which is an investment that is controlling the ownership or possession of the business in one country by an entity in another country.

Therefore, the FDI is the one activity which will help the company based in another country.

5 0
3 years ago
On September 1, 2021, Southwest Airlines borrows $39.6 million, of which $7.2 million is due next year. Show how Southwest Airli
Flauer [41]

Answer:

$10,440,000

Explanation:

The computation of Total liabilities is shown below:-

Balance Sheet

Current liability

Current portion of long term debt     $7,200,000

Long term liability

Notes payable                                     $3,240,000

Total Liabilities                                   $10,440,000

Working Note

Notes Payable =  $39.6 million - $7.2 million

= $32.4 million

4 0
3 years ago
Bob and Tom are two criminals who have been arrested for burglary. The police put Tom and Bob in separate cells. They offer to l
algol [13]

Answer:

A. Check the attached image for the payoff matrix

B. Confess

C. Confess

D. 3 years. They could have avoided this by confessing.

Explanation:

The above question is known as the prisoner's dilemma. It is a form of game theory. It analyses the best option for a player in a game without regard for what the other player does.

The dominant strategy is the best decision for the player without considering what the other player does or without cooperation between the players. The dominant strategy for each of the prisoners is to confess because if one confesses and the other doesn't, the one that confesses goes free. If both prisoners confesses, they get 10 years each. These is a better option than not confessing and getting either 3 years or 15 years of prison sentence.

Because both players don't confess, hence they get 3 years in prison. They could have avoided the sentence by confessing.

I hope my answer helps you

5 0
3 years ago
L. Lyons started a business and invested $4,000 in exchange for common stock. Illustrate how to record the transaction in the T-
Alik [6]

Answer: Debited/left/credited/right

Explanation:

8 0
3 years ago
If demand is price inelastic, then a. buyers respond substantially to a change in price, but the response is very slow. b. the d
snow_lady [41]

Answer:

C.

Explanation:

Price elasticity of demand (PED) measures the responsiveness of demand after a change in the good’s own price.

Demand is relatively inelastic if the quantity demanded changes less than proportionally to the change in price .

In this instance, total revenue increases following an increase in price.

Inelastic product is highly unresponsive to changes in price.

If the co-efficient of price elasticity of demand <1, then demand is said to be price inelastic i.e. unresponsive to a change in price Price.

Following a change in price, the total revenue earned by the producing firm will depend on the PED for its product.

If the coefficient of PED is <1, a rise in market price (e.g. from P1 to P2) will lead to an increase in total revenue for the seller of the product.

7 0
3 years ago
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