answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Helga
21 day ago
14

Assume an economy where the consumption function is defined as C = CC + cY, and the investment function is defined as I = mr, wh

ere Y is total income, and r is the interest rate. What does the slope of the IS curve depend on?
Business
1 answer:
Nady [3.6K]21 day ago
6 0

Answer:

c and m

Explanation:

Considering the provided information,

Consumption function: C = CC + cY

Investment function: I = mr

where,

Y indicates total income

r represents the interest rate

The equation describing the IS curve can be stated as:

Y = C + I

Y = CC + cY + mr

Y - cY = CC + mr

(1 - c)Y = CC + mr

(1 - c)Y - CC = mr

\frac{(1 - c)Y - CC}{m}=r

\frac{(1-c)Y}{m} -\frac{CC}{m}=r

The slope of the IS curve is determined by differentiating 'r' with respect to 'Y',

\frac{dr}{dY}=\frac{(1-c)}{m}

Thus, the slope is contingent upon the variables c and m.

You might be interested in
If a company separates customers into categories and treats each group differently, what strategy is it using?
Scilla [3833]
The answer is A.) channel management 
4 0
18 days ago
Read 2 more answers
Ted has been a fisherman all of his life. Ted realizes the risk he takes as a business whose market structure is a perfectly com
Nady [3600]
1) The minimum average total cost occurs when Ted catches and processes 2,000 fish, leading to a cost of $45 per fish. 2) When the market price is set at $51 per fish, Ted's optimal output is 3,000 fish, yielding a profit of $12,990. 3) At a market price of $45 per fish, Ted would again produce 2,000 fish but would not earn any profit.
8 0
20 days ago
If there are constant rumors that a business is in financial crisis, employees might lose internal motivation. which level of ma
harina [3808]
<span>When there are ongoing speculations regarding a company's financial troubles, it can lead to a decrease in employees' internal motivation.

The level of Maslow's hierarchy that corresponds to this scenario is the safety needs level.

</span><span>Safety needs in Maslow's framework pertain to the requirement for security and safeguarding.

This security encompasses the safety of life and belongings, as well as job stability, among other aspects.
</span>
7 0
1 month ago
Read 2 more answers
Which one of the following will produce the lowest present value interest factor? A. 6 percent interest for 5 years B. 6 percent
Nady [3600]

Answer:

Option E. 8 percent interest over a period of 10 years

Explanation:

The formula for Present Value Impact Factor is

PVIF = a / (1 + r)^ n

Where

a represents the future amount to be received

r stands for the discount interest rate

and n signifies the number of years or any time period

If the denominator grows larger, the Present Value Interest Factor will decrease, implying that the highest denominator occurs at 8 percent interest for 10 years. Therefore, option E is correct.

3 0
20 days ago
Galla Inc. operates in a highly competitive market where the market price for its product is $181 per unit. Galla desires a $19
Free_Kalibri [3773]

Respuesta:

Objetivo de costo = Precio de mercado - Margen de beneficio deseado

                   = $181 - $19

                   = $162

Explicación:

El costo objetivo es la diferencia entre el precio de mercado competitivo y el margen de beneficio deseado. En el método de costo objetivo, el precio de mercado está fijado por las fuerzas del mercado. Se resta el margen de beneficio deseado del precio de mercado para obtener el costo objetivo.

7 0
1 month ago
Other questions:
  • The marine corps, while also steeped in tradition and focused on the individual marine, prides itself on its quick responsivenes
    15·2 answers
  • Rachel initiated the practice of company visits as part of reaching out to her company’s loyal customers . She set up a campaign
    11·1 answer
  • At john deere, thousands of people both inside and outside the organization make decisions about target segments, branding, prod
    9·1 answer
  • On April 1, Otisco, Inc. paid Garcia Publishing Company $1,548 for 36-month subscriptions to several different magazines. Otisco
    5·1 answer
  • Starbucks has become a phenomenon worldwide, with more than 24,000 stores in more than 60 countries. Sales are great even at rel
    7·1 answer
  • You are the IT manager for the Andrews Company. A large shipment of new computers has just arrived. You notice that the inventor
    15·1 answer
  • To lease a new car, you must make a down payment when you sign the lease, then pay $199 per month. six months after signing his
    15·1 answer
  • A questionnaire was given to students. the first question asked was​ "how stressed have you been in the last week on a scale of
    15·1 answer
  • Prepare a statement of cash flows using the indirect method for the year ended June 30, 2019. (Amounts to be deducted should be
    6·1 answer
  • A project requires a $30,000 investment and is expected to generate end-of-period annual cash inflows as follows: Year 1 Year 2
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!