It is False When the housing market collapsed in 2007, the demand for loanable funds decreased and caused interest rates to decrease.
Because Interest rates typically decline during recessions as loan demand slows, bond prices rise and the central bank eases monetary policy. During recent recessions, the Federal Reserve has cut short-term rates and eased credit access for municipal and corporate borrowers. No price in the economy is as important as the price of money. Interest rates arguably drive the business cycle of expansion and contraction.
Interest rate is the amount a lender charges a borrower and is a percentage of the principal the amount loaned.
Recession is a period when the business and industry of a country is not successful.
Corporate is formed into an association and endowed by law with the rights and liabilities of an individual.
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Answer:
The correct answer is option b.
Explanation:
When foreign producers sell their goods and services in the US market they get US dollars in return. They use these dollars to buy goods and services from the US.
If import restrictions prohibit foreigners from selling various goods and services in the U.S. market, foreigners will have fewer U.S. dollars which they can spend to buy U.S. goods and services. So they will be able to purchase fewer goods and services from the US.
Answer:
Incurred but unpaid
Explanation:
When wages and salaries are incurred by an entity and paid, the entries required are debit Wages and Salaries expense, credit cash account. However, when the expense is incurred but cash is yet to be paid, this represents a liability to the organization and as such, an accrual is required. The entries to be posted are debit Wages and salaries expense (in the income statement), credit Accrued wages and salaries (in the balance sheet).
Answer:
Excluded from GDP
The production of the set of tires does not included on the GDP as it is referred to as an intermediate goods which are used to produce the final product (which is the two door coupe, in this case).
Explanation:
Gross domestic Production (GDP) represent the total production of a nation within its domestic borders. Some of the items that are excluded in GDP include: sales of goods that were produced outside the domestic borders of the country, intermediate goods that are used to produce other final goods, sales of used goods, illegal sales of goods and services (black market) and transfer payments made by the government
Governments money is usually spent for weapons or vaccines for sicknesses.
