This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Explain how a decrease in the interest rate will affect ... (Read 20 times)

charchew

  • Hero Member
  • *****
  • Posts: 579
on: Jun 30, 2018
Explain how a decrease in the interest rate will affect investment.

Question 2

A barter economy is one in which:
 a. money serves as a medium of exchange.
  b. only precious metals are accepted as money.
  c. goods are traded directly for other goods.
  d. paper money is backed by gold.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

wtf444

  • Sr. Member
  • ****
  • Posts: 314
Reply #1 on: Jun 30, 2018
Answer to Question 1

The interest rate is the cost of borrowing investment funds. When the interest rate decreases, then the cost of borrowing falls, and so firms find it profitable to undertake additional investments. Therefore, we find an inverse relationship between the interest rate and investment spending.

Answer to Question 2

c


charchew

  • Member
  • Posts: 579
Reply 2 on: Jun 30, 2018
Excellent

cam1229

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Did you know?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

United States, southwestern and southern states are suffer from a significant decrease in rainfall United States, southwestern and southern states are suffer from a significant decrease in rainfall
Total Fertility Rate in the United States, 1860–2008 Total Fertility Rate in the United States, 1860–2008
A bus starts from restat a station and accelerates at a rate of 2 m/s^2 for 15 seconds. It then runs A bus starts from restat a station and accelerates at a rate of 2 m/s^2 for 15 seconds. It then runs
Daniel's Enterprises has a beta of 1.98 and a growth rate of 12 percent. The stock is ... Daniel's Enterprises has a beta of 1.98 and a growth rate of 12 percent. The stock is ...
The age-adjusted rate of melanoma, a deadly form of skin cancer, from 1973 to 2000. Over that time p The age-adjusted rate of melanoma, a deadly form of skin cancer, from 1973 to 2000. Over that time p
Sonja is paid $42.50 per hour as a veterinarian. She is paid 1 times the regular rate for all ... Sonja is paid $42.50 per hour as a veterinarian. She is paid 1 times the regular rate for all ...
Video: Pericarditis

For a complete list of videos, visit our video library