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Which of these may result in lower investment lower prices and slower economic activity?
Wiki User
∙ 10y ago
when government borrowing increases interest rates
Wiki User
∙ 10y ago
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What scenario may result in lower investment lower prices and slower economic activity?
When government borrowing increases interest rates.
What is the effects of savings and investment in circular flow of the economic activity?
The households like to allocate a part of their incomes for future uses. As a result the firms has to dispose all their goods and services that remain unsold. creating a disequilibrium to the flow of the economy.
Whats the definition of noneconomic activity?
Any activity that does not result in a factor payment. Basically, if you do something but don't get paid for it(house wife) then its non-economic.
Which economic trend might happen as a result of abnormal weather such as drought or flooding?
It can lead to negative effects on the economic activity and can even cause a recession.
Explain what is meant by the economic risk of a nation Use a specific country as an example?
The possibility that an economic downturn will negatively impact an investment. For example, launching a luxury product immediately before or during a recession carries a great deal of economic risk. Economic risk is closely related to political risk as government decisions impacting the economy may also affect an investment. For example, a central bank may raise interest rates or the legislature may raise taxes, and this may result in economic conditions impacting an investment.
What scenario may result in lower investment lower prices and slower economic activity?
When government borrowing increases interest rates.
What is the effects of savings and investment in circular flow of the economic activity?
The households like to allocate a part of their incomes for future uses. As a result the firms has to dispose all their goods and services that remain unsold. creating a disequilibrium to the flow of the economy.
Whats the definition of noneconomic activity?
Any activity that does not result in a factor payment. Basically, if you do something but don't get paid for it(house wife) then its non-economic.
Which economic trend might happen as a result of abnormal weather such as drought or flooding?
It can lead to negative effects on the economic activity and can even cause a recession.
Explain what is meant by the economic risk of a nation Use a specific country as an example?
The possibility that an economic downturn will negatively impact an investment. For example, launching a luxury product immediately before or during a recession carries a great deal of economic risk. Economic risk is closely related to political risk as government decisions impacting the economy may also affect an investment. For example, a central bank may raise interest rates or the legislature may raise taxes, and this may result in economic conditions impacting an investment.
Why crude oil price reduced in 2008?
As a result of a downturn in the worlds economic activity the demand for crude reduces causing the price to go down.
Why is the golds price increasing so much?
Apparently, the price of gold has risen as a result of the recent economic crisis. Gold prices tend to rise in the following situations:WarsTimes of crisisBank failureInterests that don't match inflationHence, gold is not considered a good long term investment since its fluctuation in the market is dependent on factors beyond our control. To find out more about gold prices, check out the Diamond Price Guide website.
What is investor confidence?
Investor confidence refers to the level of trust and optimism that investors have in the financial markets and their expectations for future returns on investment. It is influenced by various factors such as economic conditions, political stability, market performance, and regulatory environment. Higher investor confidence typically leads to increased investment activity, while lower confidence can result in reduced investment and market volatility.
What is the likely result of deflation a. economic growth b. high unemployment c. rising prices d. high tax rates?
b. high unemployment
Why economic security is needed for society?
Economic Development is the result of hard work, risk-taking and monetary investment of Entrepreneurs and the first priority of an Entrepreneur is security in all aspects of life such as security for his family, his assets, his wealth and etc. So therefore security is the first step towards economic development.
The shift towards to a more integrated and interdependent global economy is a good thing. discuss?
A shift toward a more integrated and interdependent global economy will cause barriers to international trade and investment to fall. The increased international trade and cross-border investment will result in lower prices for goods and services. Globalization will stimulate economic growth, raises the incomes of consumers, and helps to create jobs in all countries that choose to participate in the global trading system.
Is long term debt asset or liabilities?
A long-term investment is considered a long-term asset, because a firm expects a probable future economic benefit to result from it.
