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 10 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

scottmt

  • Member
  • Posts: 322
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

Did you know?

There used to be a metric calendar, as well as metric clocks. The metric calendar, or "French Republican Calendar" divided the year into 12 months, but each month was divided into three 10-day weeks. Each day had 10 decimal hours. Each hour had 100 decimal minutes. Due to lack of popularity, the metric clocks and calendars were ended in 1795, three years after they had been first marketed.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

This year, an estimated 1.4 million Americans will have a new or recurrent heart attack.

Changes in the abundance and egg-hatching success rate of prairie chickens. Changes in the abundance and egg-hatching success rate of prairie chickens.
Inverse Relation Between IQ and Disease. Could this explain the Flynn effect? Inverse Relation Between IQ and Disease. Could this explain the Flynn effect?
A compression gauge designed for the higher compression rate of a diesel engine should be used when ... A compression gauge designed for the higher compression rate of a diesel engine should be used when ...
How to solve a linear algebraic bank interest problem with two unknowns How to solve a linear algebraic bank interest problem with two unknowns
Explain the myogenic autoregulation of the glomerular filtration rate Explain the myogenic autoregulation of the glomerular filtration rate
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: Acid-base imbalances - respiratory acidosis and alkalosis

For a complete list of videos, visit our video library