Question: Explain how the capacity utilization rate and the interest rate affect the level of investment.

Explain how the capacity utilization rate and the interest rate affect the level of investment.

Step by Step Solution

★★★★★

3.40 Rating (163 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

If the capacity utilization rate is high then business firms are more likely ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

661-B-E-D-S (170).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Q:

A company has a factory that is designed so that it is most efficient (average unit cost is minimized) when producing 15,000 units of output each month. However, it has an absolute maximum output...

Q:

Is a capacity utilization rate of 50 percent good? Why?

Q:

Define capacity utilization. What is an ideal utilization? Can utilization ever be greater than 100 percent? Explain.

Q:

Explain how the capacity utilization rate and the interest rate affect the level of investment, thereby AD and real GDP level

Q:

Explain how the capacity utilization rate and the interest rate affect the level of investment.

Q:

2. Explain how the capacity utilization rate and the interest rate affect the level of investment.

Q:

QUESTIONS FOR FURTHER THOUGHT AND DISCUSSION What are the advantages and disadvantages of the corporation as a form of business organization? Explain how the capacity utilization rate and the...

Q:

3. a. Define the following concepts: I. Best operating level II. Capacity utilization rate (3 marks) b. Bakewells best operating level is 1000 bread per day, but the bakery is operating at 750 per...

Q:

3. a. Define the following concepts: 1. Best operating level II. Capacity utilization rate (3 marks) b. Bakewell's best operating level is 1000 bread per day, but the bakery is operating at 750 per...

Q:

The measure of how close the firm s current output rate is to its best operating level ( percent ) is ? Multiple Choice Capacity utilization rate Economies of scale Capacity Best operating level...

Q:

Manuel is negotiating the sale of two of his rental properties. He has an offer of $500,000 for each condo. Manuel bought one condo in 1986 for $400,000 and has deducted depreciation of $185,000...

Q:

Taraz Company paid $500,000 to purchase the following portfolio of intangibles with estimated fair values as indicated: Estimated Fair Value Internet domain name . . . . . . . . . . . . . . . . . . ....

Q:

What would be the PV ( Present Value ) of $ 5 , 0 0 0 in 5 years if the discount rate is 0 % . Demonstrate you knowledge of this concept by coming up with your answer using the formula for this value.

Q:

CP18-4 Identifing Service, Merchandising, and Manufacturing Firms: Internet Research As discussed in the chapter, companies can be classified into one of three categories: service, merchandising, and...

Q:

Employment discrimination is most closely related to ______. a) specialization b) technology c) unemployment d) underemployment

Q:

Statement 1: The old Negro leagues provide an example of underemployment. Statement 2: Underemployment means basically the same thing as unemployment. a) Statement 1 is true and statement 2 is false....

Q:

Which statement is the most accurate? a) Most Americans are underemployed. b) Employment discrimination causes underemployment of labor. c) It is impossible for an economy to operate outside its...

Q:

The following table gives abbreviated balance sheets and income statements for Este Lauder Companies Assume a corporate tax rate of 33.57%. $ in millions) End of Year Start of Year Balance Sheet...

Q:

7 Consider the table given below to answer the first question (shares and market values in milions). Claway Gol (KIT) Alaska ir Group (ALE) Entergy (BR) Yunt tranda (YUX) General Electric (GE) 12.5...

Q:

An annual coupon bond has a face value of $1,000 and a coupon rate of 6.0%. Time to maturity is 16 years and the current yield to maturity is 7.5%. What percentage of this bond's value is due to its...