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What scenario may result in lower investment lower prices and slower economic activity?
When government borrowing increases interest rates.
How would an overall decrease in investment and consumer consumption impact GDP?
An overall decrease in investment and consumer consumption would likely lead to a decrease in GDP. This is because GDP measures the total value of goods and services produced in a country, and reduced investment and consumption would result in lower economic activity and output. This could lead to a slowdown in economic growth and potentially a recession.
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.
What scenario may result in lower investment lower prices and slower economic activity?
When government borrowing increases interest rates.
How would an overall decrease in investment and consumer consumption impact GDP?
An overall decrease in investment and consumer consumption would likely lead to a decrease in GDP. This is because GDP measures the total value of goods and services produced in a country, and reduced investment and consumption would result in lower economic activity and output. This could lead to a slowdown in economic growth and potentially a recession.
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.
What occurs during a slump?
During a slump, economic activity slows down, leading to a decrease in production, employment, and consumer spending. This can result in reduced investment and company profits, causing a negative impact on overall economic growth. Governments often implement various policies to stimulate the economy and help it recover from a slump.
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.
How does economic activity affect settlement patterns?
Economic activity influences settlement patterns by attracting people to areas with job opportunities and higher wages. It can lead to the growth of cities and urban areas as people migrate for employment. Conversely, economic decline can result in depopulation and the abandonment of settlements as jobs become scarce.
How can I calculate the rate of return on my investment?
To calculate the rate of return on your investment, subtract the initial investment amount from the final value of the investment, then divide that result by the initial investment amount. Multiply the result by 100 to get the rate of return as a percentage.
How do you calculate the rate of return on an investment?
To calculate the rate of return on an investment, you subtract the initial investment amount from the final value of the investment, then divide that result by the initial investment amount. Multiply the result by 100 to get the percentage rate of return.
What effect did not spending money have on the economy?
Not spending money can lead to decreased consumer demand, which in turn can slow economic growth. When consumers and businesses cut back on spending, it can result in lower sales for companies, leading to reduced production, layoffs, and a rise in unemployment. This decrease in economic activity can create a cycle of reduced income and further spending cuts, exacerbating economic downturns. Ultimately, prolonged periods of low spending can hinder investment and stifle innovation.
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.
