What are the major factors that determine investment, and what impact does each have on aggregate demand?

Answers

Answer 1

The major factors that determine investment are interest rates and inflation. The relationship between interest rate and aggregate demand is inversely related. The relationship between inflation and aggregate demand is positvely related.

What is aggregate demand?

Aggregate demand is the sum total of all goods and services produced in an economy in a given period.

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Answer 2

Interest rates and inflation are the two most important factors influencing investment. When inflation rises, real spending falls as the value of money falls.

This change in inflation causes Aggregate Demand to move to the left and decline.

Individuals and corporations seek to borrow more money at cheaper interest rates and reinvest it in capital and consumer goods.

As a result, aggregate demand will rise. However, when interest rates rise, central banks profit more from the interest payments they receive from borrowers.

What do you mean by aggregate demand?

The entire amount of money spent on those goods and services at a certain price level and moment in time is referred to as aggregate demand.

All consumer products, capital goods (factories and equipment), exports, imports, and government spending are included in aggregate demand.

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Related Questions

Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 6.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five months is as follows:
August 23,000 units
September 21,700 units
October 23,100 units
November 24,300 units
December 24,000 units
The company wants to maintain monthly ending inventories of Jurislon equal to 20% of the following month's production needs. On July 31, this requirement was not met since only 11,200 kilograms of Jurislon were on hand. The cost of Jurislon is $22 per kilogram. The company wants to prepare a Direct Materials Purchase Budget for the next five months.
The total cost of Jurislon to be purchased in August is:_______.

Answers

Assuming the company wants to prepare a Direct Materials Purchase Budget for the next five months. The total cost of Jurislon to be purchased in August is:$3,663,220.

Total cost

Using this formula

Total cost=(Desired ending inventory+ Required for production-Ending inventory)×Rate per kilogram

Total cost=[(21,700×6.5×20%)+(23,000×6.5)-11,200]×$22 per kilogram

Total cost=(28,210+149,500-11,200)×$22 per kilogram

Total cost=166,510×$22 per kilogram

Total cost=$3,663,220

Inconclusion the total cost of Jurislon to be purchased in August is:$3,663,220.

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Which section of a budget would the monthly electric bill best belong in?
A. Housing and utilities
B. Meals and entertainment
C. Groceries and supplies
D. Transportation

Answers

Answer:

A. Housing and utilities.

Explanation:

It would be part of your house and it's a utility that come with an apartment so it's part of rent.

Hope This Helps!

- Justin:)

By buying a ________ bond, investors may choose to exchange their bond for shares of common stock in the company.

Answers

The type of bond which investors would buy that they may choose to exchange their bond for shares of common stock in the company is known as convertible bonds.

What is a Bond?

This refers to the fixed income investment which is used to show that a loan is taken by either an individual or corporation.

With this in mind, if an investor wants to later exchange their bond for shares of common stock in the company, then they would have to buy convertible bonds,

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3.) What are some key things to look for when setting up an IRA?​

Answers

Here is your Answer:-

You have the freedom to choose the type of IRA that is appropriate for you and to choose your own provider when you set it up on your own. You can add the “auto funding” feature to your IRA after you’ve set up the account. Step 1:- Choose the IRA That’s Best for You. Traditional and Roth IRAs are the most popular of the many forms of IRAs.

Many South Korean HDTV manufacturers are willing to give up immediate profits for long-term penetration of the market. This is a pricing objective known as ______

Answers

The pricing objective used by the South Korean HDTV manufacturers is known as penetration pricing.

What is penetration pricing?

Penetration pricing is a pricing objective where the sellers of a new product set the price for their product unusually low. They increase the price with the passage of time.

The purpose of penetration pricing is to entice consumers to purchase the product and increase the firm's market share.

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A company issues $100,000 of 5%, 10-year bonds dated january 1. The bonds pay interest semiannually on june 30 and december 31 each year. If the bonds are sold at par value, the issuer records the sale with a debit to.

Answers

In a situation were the bonds are sold at par value, the issuer will records the sale with a debit to: Cash $100,000.

Journal entry

Based on the information given if the company issues the amount of  $100,000 of 5%, 10-year bonds in the month of  january  the appropriate journal entry to record this transaction is:

Debit Cash $100,000

Credit Bond payable $100,000

(To record bonds sold at par value)

Inconclusion the issuer will records the sale with a debit to: Cash $100,000.

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Handshakes should be:
O firm
o loose
O repeated
o accompanied by eye contact

Answers

Accompanied by eye contact

Answer:

firm

Explanation:

Bank Reconciliation and Entries

Sunshine Interiors deposits all cash receipts each Wednesday and Friday in a night depository, after banking hours. The data required to reconcile the bank statement as of July 31, 20Y0, have been taken from various documents and records and are reproduced as follows. The sources of the data are printed in capital letters. All checks were written for payments on account.

CASH ACCOUNT:

Balance as of July 1 $ 9,578. 00

CASH RECEIPTS FOR MONTH OF JULY 6,465. 42

DUPLICATE DEPOSIT TICKETS:

Date and amount of each deposit in July:

Date Amount Date Amount Date Amount

July 2 $569. 50 July 12 $580. 70 July 23 $713. 45

5 701. 80 16 600. 10 26 0601. 50

9 819. 24 19 701. 26 31 1,177. 87

CHECKS WRITTEN:

Number and amount of each check issued in July:

Check No. Amount Check No. Amount Check No. Amount

614 $243. 50 621 $309. 50 628 $837. 70

615 350. 10 622 Void 629 329. 90

616 279. 90 623 Void 630 882. 80

617 395. 50 624 707. 01 631 1,081. 56

618 435. 40 625 158. 63 632 325. 40

619 320. 10 626 550. 03 633 310. 08

620 238. 87 627 381. 73 634 241. 71

Total amount of checks issued in July $8,379. 42

BANK RECONCILIATION FOR PRECEDING MONTH:

Sunshine Interiors

Bank Reconciliation

June 30, 20Y0

Cash balance according to bank statement $9,422. 80

Adjustments:

Deposit of June 30 not recorded by bank $780. 80

Outstanding Check No. 580 ($310. 10)

Outstanding Check No. 602 (85. 50)

Outstanding Check No. 612 (92. 50)

Outstanding Check No. 613 (137. 50)

Total adjustments 155. 20

Adjusted balance $9,578. 00

Cash balance according to company's records $9,605. 70

Adjustments:

Bank service charges (27. 70)

Adjusted balance $9,578. 00

JULY BANK STATEMENT.

Required:

1. Prepare a bank reconciliation as of July 31. If errors in recording deposits or checks are discovered, assume that the errors were made by the company. Assume that all deposits are from cash sales.

2. Journalize the necessary entries (a) that increase cash and (b) that decrease cash. The accounts have not been closed.

3. What is the amount of Cash that should appear on the balance sheet as of July 31?

4. Assume that a canceled check for $180 has been incorrectly recorded by the bank as $1,800. Select how the error would be included in a bank reconciliation and how it should be corrected.

Feedback

Set up two sections: one for the bank balance and the other for the company cash account. Determine the effect of the data on each section. Recall that when you are finished, the adjusted balances in the bank and company sections of the reconciliation must be equal. If not, an item has been overlooked or treated in error. Recall that the company's cash account balance is updated for any items in the company section of the bank reconciliation.

5. Errors should be added or deducted from the bank or company section of the reconciliation depending on the nature of the error. If the bank made the error, the bank section would be adjusted. Subtract to obtain the difference between the correct and incorrect amounts. Has the bank overstated or understated the Cash balance in their records?

Answers

If the errors were made by the company, the adjusted bank balance is $11,494 and the adjusted book balance is $11,494.

Bank reconciliation

a. Bank reconciliation statement  July 31, 20Y0

Cash balance according to bank statement $11,601.41

Add deposit not recorded $1,177.87

Total $12,779.28

Less outstanding checks

No.613 $137.5

No.618 $837.7

No.633 $310.08

Total $1,285.28

Adjusted balance $11,494

($12,779.28-$1,285.28)

Bank reconciliation statement  July 31, 20Y0

Cash balance according to company book $7,664

($9,578+$6,465.42-$8,379.42)

Add proceed of note collected:

Principal  $4,000

Interest $160

Add july deposit error $18

Add error in check No.627 $63

Total $4,241

Deductreturn check $375

Service charges $36

Total $411

Adjusted balance $11,494

($7,664+$4,241-$411)

2. Journal entries

Debit Cash $4,241

Credit Notes receivable $4,000

Credit Interest revenue $160

Credit sales $18

Credit Account payable $63

Debit Accounts receivables $375

Debit Miscellaneous expense $36

Credit Cash $411

3. The amount of cash that should appear on the balance sheet as of July 31 is $11,494.

4. The error amount of $1,620 calculated as ($1,800-$180) should be included in the bank statement balance while the cancelled check should as well be corrected by giving the same check to the bank.

Inconclusion If the errors were made by the company, the adjusted bank balance is $11,494 and the adjusted book balance is $11,494.

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Most companies base their compensation policies on all of the following factors EXCEPT ________. Group of answer choices worker productivity worker's previous salary cost of living government legislation

Answers

Most companies base their compensation policies on worker productivity.

What is compensation policy?

Compensation policy includes principle given by an organization or company regarding how bonuses, benefits and salaries of an individual employee will be handled.

Work done is proportional to compensation.

Therefore, Most companies base their compensation policies on worker productivity.

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To become a successful entrepreneur, you should:
Select one:
O Prepare to risk all of your family assets.
O Plan to quit your job before starting.
O Choose a business that is in a field you enjoy.
O Expect to put down a lot of money.

Answers

I guess it is Choose a business that is in a field you enjoy .....

An investment of $\$24,\!000$ is made in a government bond that will pay $1\%$ bi-monthly interest (meaning that the investment will increase by $1\%$ every two months). At the end of five years, what is the total number of dollars in this investment

Answers

At the end of five years, the total number of dollars in this investment would be $137,843.79.

What would be the value of the account at the end of 5 years?

When the account is compounded bi-monthly, it means that the amount invested and the interest already earned increases in value by 1% every two months.

The formula for calculating the amount that would be in the investment after years is>

FV = P (1 + r)^nm

FV = Future value P = Present value R = interest rate m = number of compoundingN = number of years

$24,000(1.01)^(5x6) = $137,843.79

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When a company enters a new business in a different industry from that in which it currently operates and does not expect to achieve any value chain synergies, this is ________ diversification.

Answers

When a company enters into a new business that is unrelated without expecting to acheive any value chain synergies, it is can be referred to as: unrelated diversification.

What is Unrelated Diversification?

Unrelated diversification can be described as a type of diversification whereby a company ventures into unconnected business areas where the opportunities for sharing resources between areas do not exist.

An example of unrelated diversification is Amazon venturing into grocery store business which involves the purchase of whole foods.

Therefore, when a company enters into a new business that is unrelated without expecting to acheive any value chain synergies, it is can be referred to as: unrelated diversification.

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Geoff and Matilda formed an LLC. Their LLC will be most likely be treated as a __________ for tax purposes.

Answers

Answer:

pass-through entity

Explanation:

A Pass-through query allows you to execute a SQL statement directly against the tables in an external database (such as an Oracle, Sybase, or SQL Server database). This method uses your ODBC connection to directly access the data in the external database without having to link to the tables or import the data from the external database.

Every time a company hires a new employee and trains them to take on the new role, what kind of risk are they
taking?
O
financial
legal
O
operations
strategic

Answers

The risk a company takes every time a company hires a new employee and trains them to take on the new role is known as financial risk.

What is a risk?

Risk can be defined as a possibility or a situation which is uncertain and involves exposure to danger. A risk from an investment perspective is the possibility of incurring losses due to market uncertainties.

When a company hire new employee, the company would expend some cost towards training of the newly recruited employee; which is termed financial risk.

Hence, the risk a company takes every time a company hires a new employee and trains them to take on the new role is known as financial risk.

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The demand function indicates that the quantity of a good consumed depends on:_________.a. the income of buyers b. the price of the good c. the price of inputs d. the effect of the demand shifter

Answers

Answer:

Answers a., b., and c. would all work as valid answers.

The demand function indicates that the quantity of a good consumed depends on The correct option is A. The income of buyers.

The demand function is a mathematical relationship that shows how the quantity of a good demanded depends on the price of the good, the income of buyers, and other factors.

The price of the good is the most important factor that affects demand, but the income of buyers is also a significant factor.

As the income of buyers increases, they tend to demand more goods, including the good in question. This is because they have more money to spend, and they are able to afford to buy more of the good.

The price of inputs is also a factor that can affect demand. If the price of inputs increases, the cost of production increases, and this can lead to an increase in the price of the good. As a result, consumers may demand less of the good.

The effect of the demand shifter is a factor that can change the demand for a good, but it is not a part of the demand function. The demand shifter can be caused by changes in consumer preferences, changes in the price of related goods, or changes in government policy.

So, the answer is (a), the income of buyers.

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If the steady-state rate of unemployment equals 0. 125, the rate of job findings is 0. 56, then the fraction of employed workers who lose their jobs each month must be

Answers

Answer:

Explanation:

125, the rate of job findings is 0. 56, then the fraction of employed workers who lose their jobs each month must be.

The fraction of the employed workers who lost jobs at the end of each month should be 0.08

What is unemployment rate?

The unemployment is the situation in the working environment which shows the number of educated candidates who are still ideal and does not possess any job.

Computation:

[tex]\begin{aligned}\text{Rate}&=\dfrac{\text{f}\times\text{Um}}{( 1-\text{Um})}\\\\& = \dfrac{0.125\times( 0.56)}{( 1- 0.125 )} \\\\& = 0.08\end{aligned}[/tex]

were,

f is rate of job finding

Um is the unemployment rate

Therefore, the rate of job separation is 0.08

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Mortgage interest paid on a home is an example of a tax
A. deduction
B. credit
C. form
O D. refund

Answers

Answer:

A. Deduction

Explanation:

it's when u pay Ur taxes

D. Refund not deduction not credit not form not refund

Eloise, the director of Human Resources at her organization

Answers

Since Eloise is working to determine its human resource needs for the next five years, her first course of action is: assessing the future labor supply.

What is Human resources management?

Human resources management (HRM) can be defined as an art that involves effectively and efficiently managing, controlling and improving the functions, number of employees or workers, activities that are being used by an organization.

This ultimately implies that, human resources managers are saddled with the responsibility of recruiting, managing and improving the welfare and working conditions of the employees working in an organization because they are the most important asset of any organization.

In conclusion, Eloise's first course of action is assessing the future labor supply for her organization.

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Complete Question:

Eloise, the director of human resources at her organization, is working to determine its human resource needs for the next five years. Eloise's first course of action is?

Planning , using a five step process.

If the annual interest is $100 on a 3-year, straight interest-only note, and the interest rate on the note is 5% per year, what is the amount of the loan?

Answers

Assuming the interest rate on the note is 5% per year, the amount of the loan is $2,000.

Loan amount

Using this formula

Loan amount=Annual interest/Interest rate on the note


Where:

Annual interest=$100

Interest rate on the note=5% or 0.05

Let plug in the formula

Loan amount=$100/0.05

Loan amount=$2,000

Inconclusion assuming the interest rate on the note is 5% per year, the amount of the loan is $2,000.

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Standards are:_______.
A. set for each major production input or task
B. rarely used outside of management accounting
C. benchmarks for measuring performance
D. compared to the actual quantities and costs of inputs

Answers

Standards are benchmarks for measuring performance.

What is standard?

Standard is used to measure an individual or group performance.

It helps to know if an individual is doing exceptionally well or not.

Therefore, Standards are benchmarks for measuring performance and can be compared to the actual quantities and costs of inputs.

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True or false? When creating a budget to repay your student loans, you can
save money by paying only the interest.
O True because paying only the interest reduces the length of the loan and
reduces the total amount you pay in the long-term
True because paying interest means monthly payments will be small
O False because it is not possible to only pay the interest,
O False because paying only interest lengthens the life of the loan and increases
the total amount you pay in the long-term.
Next →
Sign out

Answers

The correct answer choice is; True, because paying only the interest reduces the length of the loan and reduces the total amount you pay in the long-term.

Paying off Student Loans

It follows from study that; while paying off student loans, it usually pays off to pay the interest first. On this note, it follows that the principal of the loan remains constant and hence, compound interest is avoided and consequently, the total amount you pay in the long-term is reduced.

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What type of orientation has a firm adopted when it measures itself primarily against firms that challenge it for customers

Answers

Answer:

Competitor

Explanation:

A pricing strategy in which factors such as consumer demand and manufacturing costs are less important than the price of a comparable product supplied by a strong competitor; also known as competition-based pricing.

What is the Competitor orientation?

The emphasis on outperforming the competition rather than increasing profits is known as competitor orientation. Despite being, by definition, suboptimal for profit-maximizing organizations, thrive in commercial environments.

Their strategy is based on the notion that they should assess themselves largely in light of their competitors.

Pricing that is on par with that of their primary competitors is referred to as competitive parity. Pricing at current levels: Only modifies prices to keep up with competitors.

Therefore, Competitor type of orientation has a firm adopted when it measures itself primarily against firms that challenge it for customers.

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Create a hypothesis for why homeowners insurance continues to increase
annually while renters insurance does not.

Answers

Answer:

Inflationary clauses in your insurance policy allow for the rising costs of building and associated labor. The cost of building materials such as wood, metal and cement increases each year. Likewise, if the cost of replacing your home increases, chances are your insurance costs will also increase. While that may be good news if you experience a loss, it'll be reflected in your monthly or yearly insurance premiums.

Explanation:

What factors play a role in gendering specific occupations?

Answers

Answer:

Risk, physical demands, skill level, competence

Explanation:

An indication of one’s lifestyle is __________________.

the kind of vehicle you drive
the kind of house you live in
the kind of clothes you wear
all of the above

Answers

Answer:

all of the above

Explanation:

all of these indicates one's lifestyles.

To enhance the control environment, management develops job __________. Multiple Choice duplicates misstatements labelsIncorrect descriptions

Answers

Answer:

descriptions

Explanation:

it makes the sentence complete.

Shaun oversees the marketing and sales activities for a company that sells products through its website. his job title is best described as . nadine analyzes ways to improve the number of viewers and time they spend on a website by promoting the site and updating its text and graphics to improve its search rankings. her job title is best described as .

Answers

The answer for the first one is Online Merchant

And the answer for the second one is Search Marketing Strategist

                                              You're Welcome

           PS: I'm not sure if it's too late, but hopefully I helped you.

Answer:

The other person is correct.

Explanation:

When analyzing a market how do economists deal with the factors that affect market

Answers

Explanation:

In order to study the change in the factors affecting the market easily, economists prefer to consider one factor at a time and keep other factors constant. This strategy is difficult to apply in real world, but this makes the understanding of an economic model simpler

In the country of Agronomia, banks charge 10 percent interest on all loans. If the general price level has been increasing at the rate of 4 percent per year, the real rate of interest in Agronomia is

Answers

Assuming the general price level has been increasing at the rate of 4 percent per year, the real rate of interest in Agronomia is 6%.

Real rate of interest

Using this formula

Real rate of interest=Interest on all loans-General price level rate

Where:

Interest on all loans=10%

General price level rate=4%

Let plug in the formula

Real rate of interest=10%-4%

Real rate of interest=6%

Inconclusion the real rate of interest in Agronomia is 6%.

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Debts and obligations of a business are referred to as:.

Answers

Answer:

Liabilities

Explanation:

Liabilities are the debts and obligations that a business owes.

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