Demand curve will shift towards right due to <u>a decrease in U.S. real interest rate</u>
With the decrease in the interest people will sell bonds and get money, as a result money supply will increases and it leads to more demand for goods and services.
It means <u>a decrease in U.S. real interest rate</u> causes rightward shift of AD curve.
Demand is an monetary concept that pertains to a purchaser's preference to purchase items and offerings and willingness to pay a particular rate for them. An growth within the rate of an awesome or service has a tendency to decrease the quantity demanded.
Demand may be defined as the quantity of a commodity that a client is in a position and willing to shop for, at each viable fee, over a given time period. Essential elements of call for are quantity, ability, willingness, fees, and period of time.
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Answer: Decrease in fixed costs
Explanation:
When using the tax-shield approach, the relevant method of calculating operating cashflow is;
= (Sales - Cash Costs) * (1 - tax rate ) + (Depreciation * tax)
Looking at the formula it can be inferred that if fixed costs (part of cash costs) were to decrease, the cash from sales would be higher and would therefore result in an increased operating cashflow for the company.
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A savings account will typically have the highest interest rate.
