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What happens when the cost of capital increases?

The market value of a firm's equity increases, the cost of capital decreases.


What happens to taxes when the government increases spending?

they go up


What happens in the state capital?

The state capital holds that state's government. The head of the state government is the state capitol building, located in the state capital.


What happens to the economy when the economy's capital stock increases?

Supposing that with capital you mean physical capital (all kind of physical investments like machines, and so on), it tends to increase the Gross Domestic Product (GDP), but increases in capital along time lead to lower increases in GDP.This is known in economics as the diminishing marginal returns.


What happens to a net personal income with the government lowers taxes?

If the government lowers your taxes your NET income increases.


What happens when the government increases the money supply?

There several things that happen when the government increases the money supply. This may cause inflation as there will be more money in the market than goods.


What happens when a nation's currency depreciates?

Exports increase. Imports decrease. FDI increases. Foreign capital investment increases. Economic growth rises. Besides these positives there is the negative effect and thats inflation which increases.


What happens when a nation's currency depreciate?

Exports increase. Imports decrease. FDI increases. Foreign capital investment increases. Economic growth rises. Besides these positives there is the negative effect and thats inflation which increases.


What happens when wbc increases?

wht happens if WBC increases?


What happens to net personal income when government lowers taxes?

your net income increases, but your income tax decreases


What happens to net personal income when the government lowers taxes?

your net income increases, but your income tax decreases


When the price of a capital good increases what happens to the prices of related consumer goods and services Why?

Prices increase due to the increase in production costs.