AGI (adjusted gross income) is total gross earnings less above-the-line deductions such as the educator rate deduction or the scholar loan activity deduction.
These are located on Schedule 1 of Form 1040. Your taxable income is your AGI minus either the preferred or itemized deductions and the qualified enterprise profits deduction.
What is the method for AGI?The AGI calculation is enormously straightforward. It is equal to the total earnings you report it is subject to profits tax—such as revenue from your job, self-employment, dividends and hobby from a bank account—minus unique deductions, or “adjustments” that you're eligible to take.
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https://brainly.com/question/1931633#SPJ4monopolistic competition normally consists of 25 to 75 firms rather than hundreds or thousands and involves which of the following characteristics?
a. Small market shares
b. No collusion
c. Independent action
Monopolistic competition normally consists of 25 to 75 firms rather than hundreds or thousands and involves Small market shares, No collusion, and Independent action.
Monopolistic competition is a type of competition in which many producers compete with each other but sell different products and therefore are not perfect substitutes.
To have or gain complete control over anything, especially in the business sphere. To prevent others from having a share, she did not feel that the fine was a sufficient deterrent against monopoly practices by large producers. The company has been accused of monopoly conduct. see. monopoly. Monopolistic competition exists between monopoly and perfect competition and involves companies combining the elements of each and offering similar but not identical product offerings.Learn more about Monopolistic here: https://brainly.com/question/25717627
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n which of the following scenarios would the firm in question not be able to price-discriminate? a movie multiplex cannot fill its theaters during the early afternoon at higher nighttime prices. a clothing store is typically unable to sell all of its summer inventory by the time the season ends. a pizza place near a university campus doesn't attract enough students when it charges regular prices. a fast-food chain cannot distinguish between consumers who really like its food from those who think it is merely fine.
Pricing clients differently for the same commodity or service according to what the vendor thinks they can convince the customer to accept is a sales strategy known as price discrimination. When a business practices pure price discrimination, they impose the highest price that each customer will accept.
What is price discrimination:
Each customer pays a different price for the identical good or service when a vendor discriminates on pricing.By charging the greatest price achievable for each consumed unit, the company commits first-degree discrimination.Discounts for bulk purchases of products or services are considered second-degree discrimination, whereas different prices for different consumer groups are considered third-degree discrimination.The seller's opinion that certain consumer groups can be asked to pay more or less depending on their demographics or how much they appreciate the goods or service in question serves as the foundation for price discrimination.
When the profit from separating the marketplaces exceeds the profit from preserving the combined markets, price discrimination is most advantageous. If price discrimination is effective and how long different groups are ready to pay different prices for the same commodity depends on the relative elasticities of demand in the submarkets. Customers in a more inelastic submarket pay more, whereas those in a relatively elastic submarket pay less.
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under a managed float exchange rate system, the fed may attempt to stimulate the u.s. economy by the dollar. such an adjustment in the dollar's value should u.s. economic growth. (lo 5.1, 5.3) group of answer choices weakening; increase weakening; decrease strengthening; increase strengthening; decrease
Under a managed float exchange rate system, the Fed may attempt to stimulate the US economy by weakening the dollar. Such an adjustment in the dollar's value should decrease the US economic growth. Thus, the correct answer is B 'weakening; decrease'.
A managed floating exchange rate refers to an exchange rate system that allows a country's central bank to intervene regularly in foreign exchange markets in order to change the direction of the currency's float or/and reduce the amount of currency volatility. The managed floating exchange rate system is also known as a 'dirty float'. In simple words, under the managed floating exchange rate system, central banks are responsible for managing currency by issuing new currency, managing foreign currency reserves, and setting interest rates.
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Using the amount of his current paycheck, miguel created a series of financial goals and strategies. Which type of financial risk might this cause for him in the future?.
The possibility that inflation will result in a decrease in the purchasing power of an investment will be referred to as inflationary risk.
Because bond payments are typically based on fixed interest rates, an increase in inflation has a negative impact on their purchasing power, making them particularly vulnerable to inflationary risk.
What is an illustration of a risk from inflation?
The classic illustration of an asset that is subject to inflationary risk is lending a fixed amount of money for later repayment. This is because the money repaid may be significantly less valuable than the money lent.
Is the risk of inflation a systematic risk?
The systematic risk component of inflation risk is the possibility that all prices will rise. This risk has an impact on all customers. It is impossible to diversify away this risk. The non-systematic risk component of inflation risk is the possibility of an increase in the prices of a specific goods basket.
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martinez freight wants to issue 5.4 percent preferred stock with a stated liquidating value of $100 per share. the company has determined that stocks with similar characteristics provide a return of 8.2 percent. what should the offer price be?
The individual who sells the goods and services determines the offer price. The stock exchange or market forces are what determine the price of a specific stock or share.
An offering price is the price per share at which the investment bank sponsoring the issue makes publicly traded shares available for purchase.
The price on offer is $65.85.
Offer price =
Preferred stock × Liquidating value/Return
0.054 x $100/ 0.082
5.4 / 0.082
$65.85
A corporation must list shares in exchange when it seeks to become public. When the public purchases the shares, it is feasible. As a result, listing is a very difficult process that calls for multiple licences. Underwriters hold the authority to list a company.
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Much to the chagrin of established firms, one clear supertrend is that products and services must get to market faster because
a. it takes lots of resources to survive disruptive innovation.
b. more competitors are offering targeted products.
c. globalization is transforming whole industries.
d. knowledge is the new competitive advantage.
Option a is correct. Because more rivals are delivering targeted items, the obvious supertrend is that its products and services must reach the market competitors more quickly.
Because more rivals are delivering targeted items, the obvious supertrend is that its products and services must reach the market more quickly.
Businesses that provide a wide range of goods or services are currently under intense pressure from rivals who specialize in one area of the market.
Therefore, the evident supertrend is that its products and services must get to market faster because more competitors are offering targeted offerings, much to the chagrin of the established corporations.
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suppose you own a tour bus and you book groups of 20 to 70 people for a day tour. the cost per person is $30 minus $0.25 for every ticket sold. if gas and other miscellaneous costs are $200, how many tickets should you sell to maximize your profit? treat the number of tickets as a nonnegative real number.
Using the profit formula, we know that we will be selling 60 tickets to maximize our profits.
What is profit?The money a business keeps after deducting all costs is known as profit. The main objective of every business, whether it be a little lemonade stand or a publicly traded multinational corporation, is to make money. As a result, a business's success is measured by its profitability in all of its forms.Total Revenue - Total Expenses = Profit is the formula used to determine profit. Direct and indirect costs are subtracted from all realized sales to arrive at the profit.So, the tickets we will be selling to maximize the profit will be:
Revenue R(q) = q(30 − 0.25q)
= −0.25q² + 30q
Cost C(q) = fixed cost
= 200
Profit P(q) = R(q) − C(q)
= −0.25q² + 30q − 200
Maximize P(q): P'(q) = 0.
P'(q) = −0.5q + 30 = 0 ⇒ 30 = 0.5q
q = 300/5 = 60
Therefore, using the profit formula, we know that we will be selling 60 tickets to maximize our profits.
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The tax multiplier equals the change in ________ divided by the change in ________.
The tax multiplier equals the change in equilibrium real GDP divided by the change in taxes.
What is a Tax Multiplier?The eventual rise in real GDP that will follow from a change in taxes is revealed by the tax multiplier. It's interesting to note that the tax multiplier is always exactly one less than the expenditure multiplier. Since lower taxes boost consumption, total spending, and income, while higher taxes decrease these factors, the tax multiplier has a negative sign. The phrase in brackets, in the case of a proportional tax, is a new multiplier. The marginal inclination to consume divided by one minus the marginal propensity to consume yields the simple tax multiplier. The simple expenditures multiplier, which gauges the change in aggregate production brought on by adjustments to an autonomous expenditure, is a related multiplier.
Hence, The tax multiplier equals the change in equilibrium real GDP divided by the change in taxes.
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when a japanese investor buys stock in general motors, which of the following transaction would this be considered for the united states?
Financial account transaction occurs when a Japanese investor buys stock in General Motors.
The financial account contains a systematic summary of all financial transactions. The financial account shows how net lending sectors allocate their surpluses by acquiring assets or reducing liabilities, and how net borrowing sectors obtain resources by incurring liabilities or depleting assets.
An element of a nation's balance of payments known as a financial account covers claims on or liabilities to nonresidents with regard to financial assets. Direct investment, portfolio investment, and sector-specific reserve assets are among the elements of a financial account.
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elaine purchased her living unit in a building with five other separate units. she purchased a:
Elaine purchased her living unit in a building with five other separate units. she purchased a Townhouse.
Technically, a townhouse might be any urban residence, but the term is typically used to describe a particular type of multi-story house that shares one or more walls with nearby homes. Each has a separate entrance, and many also have a little front lawn and backyard.
Townhouses are frequently constructed as a part of neighborhoods or gated communities. The affordability, HOA and shared amenities, and close proximity to neighbors are benefits of townhouse living. The drawbacks of townhouse living include a smaller living area, fewer design options, and less privacy.
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the economy is growing far too quickly, as high aggregate demand is causing inflation. a. what fiscal policy should be pursued in this instance? (click to select) fiscal policy. b. what will be the effect of the appropriate policy on aggregate demand? aggregate demand will shift to the (click to select) .
Contractionary fiscal policy should be used because the economy is expanding far too quickly and because the inflationary effects of high aggregate demand are being felt.
What is Contractionary fiscal policy?Fiscal policy in contraction: In a fiscal policy in contraction, the government raises more money than it spends through tax rate increases, spending cuts, or a combination of the two. When the economy is doing well is the best time to implement this type of fiscal policy. Contractionary fiscal policy is the opposite of expansionary fiscal policy.The government's decision to cut spending could be a contractionary fiscal policy example. Meaning that less money will be allocated to government programs like the military, healthcare, and the forest service.Contractionary fiscal policy should be used since the economy is expanding far too quickly and inflation is being brought on by strong aggregate demand.Given that the economy is expanding much too quickly and that the inflationary effects of high aggregate demand should be addressed, contractionary fiscal policy should be adopted.
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Correct question:
The economy is growing far too quickly, as high aggregate demand is causing inflation. a. what fiscal policy should be pursued in this instance?
The basic cause of deadweight losses from the existence of common resources and externalities is.
Deadweight losses are generally caused by an inefficient distribution of resources, which is brought about by a variety of interventions, including price floors, ceilings, monopolies, and levies.
What is minimal deadweight loss?The cost of market inefficiency, which happens when supply and demand are out of balance, is known as a deadweight loss.Deadweight loss, a term primarily used in economics, refers to any deficit brought on by an ineffective resource allocation.Deadweight losses may result from price floors, such as minimum wage and living wage laws, price ceilings like price controls and rent controls, and taxation.The distribution of resources within a society may become ineffective with less trade.When supply and demand are out of equilibrium, a deadweight loss arises, which impairs the efficiency of the market. When items on the market are either overvalued or undervalued, market inefficiency results.Hence ,deadweight losses are generally caused by an inefficient distribution of resources, which is brought about by a variety of interventions, including price floors, ceilings, monopolies, and levies.
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which of the following is an intended beneficiary to a contract? a person whose residential property value goes up as the result of a city's agreement with a commercial land developer
foreign steel exports, a company based in brazil, colludes with other steel-export companies from around the world to agree on the price of steel sold in the u.s., which causes the price of steel in the u.s. to substantially increase. this type of agreement:
This type of agreement is a violation of the Sherman Act.
A piece of antitrust law from the United States, the Sherman Antitrust Act of 1890, established the idea of unlimited competition between companies. It was authorized by Congress, and its main author is Senator John Sherman. The Sherman Act forbids "any contract, combination, or conspiracy in restraint of trade," as well as "every monopolization, attempted monopolization, conspiracy, or combination to monopolize." In order to avoid monopolistic alliances that impede trade and erode economic competition, the Sherman Antitrust Act was created in 1890. It prohibits both formal cartels and attempts to monopolize any sector of American commerce.
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Decisions relating to the range of products and services a firm will offer determine the firm's
a. absorptive capacity.
b. geographic scope.
c. level of diversification.
d. vertical integration.
A company's decision-making processes affect the kind of goods and services it will provide. Level of diversification
When a business unit enters a new market within the current industry that the company is currently operating in, this is known as diversification at the business-unit level. When a diversified corporation engages in business outside of its original area of expertise, this is known as diversification at the corporate level. the current business divisions. diversity within a group. Concentric diversification entails expanding the company's current product or service offering.
Vertical diversification .Diversification inside conglomerates. When businesses launch new products into a new market with the intention of expanding, this is known as a business diversification strategy. Large multinational corporations are better suited for the diversification strategy.
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The right to receive a proportionate share of any assets remaining after the corporation goes out of business, sells its assets, and pays off its liabilities is the right of.
Liquidation is the right to receive a proportionate share of any assets remaining after the corporation goes out of business, sells its assets, and pays off its liabilities as, it ensure that all the company's affairs have been dealt with and all its assets realised.
Liquidation generally refers to the process of selling a company's holdings, usually at a significant discount, to generate cash. In most cases, a liquidation sale portends a business closure. Once all assets have been sold, the business will be closed. When a company goes bankrupt and therefore closes down and sells all its products, it is an example of a liquidation. Selling an investment to free up cash is an example of an investment liquidation.
The bankruptcy trustee's fees must be borne by the bankrupt company. If there is no money or assets in this company, the directors themselves are to blame. Liquidation fees are known as fees and these fees must be approved by the creditors.
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based on the information about the four brands, which of the following brands would be least affected if their ads were broadcast during a dark and violent television series? group of answer choices brilette and fansheen hair and neck herb essentials and fansheen hair
c)Herb essentials would be least affected if their ads were broadcast during a dark and violent television series.
Teenagers and young adults are the target market for the shampoo Herb Essentials. In the past, this brand's advertisements used attractive music and vibrant images to draw in their target audience.
Dark and violent television series usually attract teenagers and young adults and the target audience for Herb essentials has been young adults. Doing advertisements in the darks series Herb Essentials can attract more young audiences and this will result in an increase in brand awareness.
So Herb Essentials will be least affected if their ads were broadcast during a dark and violent television series. So option c is the correct answer.
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Deciding to no longer laugh at a coworker’s inappropriate jokes, to encourage him to stop telling those types of jokes, is an example of?.
extinction. - The above-me
Explanation
If you think the joke is inappropriate, ask the person telling it to clarify it to you. Sometimes someone will deliver a joke without thinking about how hurtful it can be to others. According to Andrew Tarvin, a consultant, humorist, and author of "Humor That Works," asking people to deconstruct and explain the joke can help them recognize it is inappropriate for a workplace. If the person takes the time to explain the joke to you and you still don't understand, tell them that you think the joke is inappropriate. Tell the person the joke is inappropriate for work while maintaining your composure.
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three south american countries enter into an agreement to remove all tariffs and trade barriers between them. they decide on a common external trade policy and charge the same tariffs. which level of economic integration best describes this arrangement?
When 3 south american countries enter into an agreement to remove all tariffs & trade barriers between them, decides on a common external trade policy and charge the same tariffs. The level of economic integration that best describes this arrangement is known as Custom Union.
What is Custom Union in economic integration?Under economic integration,a customs union refers to an arrangement or agreement between two or more countries to remove trade barriers and lower or eliminate tariffs.
The members of a customs union generally apply a common external tariff on imports from non-member countries. In conclusion, the European Union (EU) is an example of a customs union.
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unforeseen economic factors caused a central american nation to suffer from a catastrophic and permanent shift in the demand for the furniture it manufactured and the fruit it produced. the country is experiencing high unemployment as a result. per the imf's articles of agreement, this nation suffered from a
The country is experiencing high unemployment as a result. per the IMF's articles of agreement, this nation suffered from a DIseconomies of scale.
What do you mean by unemployment?
Unemployment can be defined as a situation where a person actively searches for employment but is unable to find work.
It leads to not only physical issues but also mental, psychological tensions. It leads to sharp reduction in the GDP of any Country.
Five reasons for unemployment are :
Occupational immobilitiesGeographical immobilitiesTechnological changeStructural change in the economyStructural unemploymentTo know more about Unemployment from the given link
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which should be assessed by a brand manager in the selection of social media networks for marketing purposes? (select all that apply) multiple select question. the advertising revenue of the website the characteristics of the visitors to the website the 'newness' of the website the number of visitors to the website
The following should be assessed by a brand manager in the selection of social media networks for marketing purposes :
- The characteristics of the visitors to the website
- The number of daily visitors to the website
What is marketing ?Marketing is the set of activities, institutions and processes for creating, communicating, delivering and exchanging offers of value to customers, visitors , partners and society at large.The 4 P's are product, price, location and promotion. These are examples of the "marketing mix," or the combination of tools and methods that marketers use to achieve their marketing goals. The 4 hp was introduced in 1960 by the E.In short, actions taken to draw attention to a company's offering. Common examples of workplace marketing include TV commercials, roadside billboards, and magazine ads.The importance of marketing in business is to draw the visitors attention to your product or service, increase their engagement, and help them make purchasing decisions. Additionally, a marketing plan that is part of the business plan helps create and maintain demand, relevance, reputation, competition, and more.To learn more about marketing from the given link :
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why did pennsylvania farmers protest the whiskey tax? they used whiskey as a substitute for money on the frontier. they wanted to challenge the use of tariffs. they distrusted the national bank. they already paid high taxes on their property.
The Pennsylvania farmers protested the whiskey tax because they already paid high taxes on their property.
Why did Pennsylvania protest the whiskey tax?Farmers in western Pennsylvania challenged the alcohol tax in the Whiskey Rebellion of 1794. This "excessive" tax was an internal tax that was passed a few years earlier to earn more money for the federal government. They were furious about this because they typically went there to brew whiskey from grain.
In response to what they believed to be excessive taxes, farmers in Western Pennsylvania revolted in 1794, sparking a crisis that put George Washington and the young nation at risk. In 1791, Congress passed a new federal tax on alcoholic beverages and the stills that made them. Farmers in the West said the tax was a misuse of government power that unfairly targeted a group that depended on crops like corn, rye, and grain to earn a profit.
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A company producing cosmetics may have hundreds of suppliers, some of which may be selling the same or similar raw and packaging materials to other cosmetics manufacturing companies. In addition, that same cosmetics manufacturer may sell to a retailer that buys similar cosmetics from a number of other manufacturers. This scenario illustrates.
The network of all the people, organizations, resources, activities, and technology involved in the production and sale of a product is called a supply chain. Everything from the supplier's delivery of raw materials to the manufacturer's delivery of finished goods to the end user is included in a supply chain.
What is a store network model?
The practice of coordinating the various activities required to produce and deliver goods and services to a company's customers is known as supply chain management. Designing, farming, manufacturing, packaging, and transporting are all examples of activities that fall under the supply chain.
Which three basic supply chains are there?
There are three fundamental progressions of production network the board: the flow of products, information, and finances. The Product Flow The movement of goods from a supplier to a customer is referred to as the product flow. Customer returns and service requirements are also addressed in this flow of supply chain management.
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product labels on appliances include information on operating to assist you in selecting the most energy-efficient models.
Product labels on appliances include information on operating to cost assist you in selecting the most energy-efficient models
A product is any item or service you sell to serve a client's want or want. They may be bodily or digital. bodily merchandise encompass long lasting items (like vehicles, fixtures, and computers) and nondurable goods (like meals and drinks).
Excellent products need to have a stable value proposition and solve a actual trouble, be understandable by using users, perform their mission as easily and successfully as possible, and become better and harder to component with the extra they may be used.
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minnie inc. sells equipment that cost $90,000 and had been depreciated $65,000. if minnie received $20,000 in exchange for the equipment, how would she record a gain/loss on sale?
Minnie inc. recorded a loss of $5000 on the equipment
Depreciation is an accounting technique that distributes an asset's cost over the course of its anticipated useful life. Depreciation is a recurring expense that businesses report on their income statement. Assets depreciate over time, losing value. Depreciation can be calculated using one of four different approaches: straight-line, units of production, double declining balance, or sum of the years' digits.
Cost of equipment = $90000
Depreciation amount = $65000
Value of machine after depreciation = 90000 - 65000 = $25000
Money received after exchange = $20000
Gain/loss = Money received - Value of machine after depreciation
= 20000 - 25000
= -5000
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Costs that have no impact on future cash flows and are irrelevant to decisions are ______ costs.
Sunk costs are expenses that are unrelated to decisions and have no bearing on future cash flows.
Sunk costs are expenses that occurred but for which we had no control. Because they previously occurred, these expenses are never taken into consideration throughout our decision-making process.
Money that has already been spent and cannot be recouped is known as a sunk cost. The sunk cost phenomenon in business is an example of the notion that one must "spend money to make money." A sunk cost is distinct from potential future expenses a company can incur, such choices on the price of products or the cost of purchasing inventories. Future company decisions are not affected by sunk costs because they will remain unchanged no matter what happens.
Sunk costs are expenses that have already been paid for and cannot be recovered.
Sunk costs are often not taken into account in company since they are seen to be unrelated to present and future budgetary concerns.
Relevant expenditures, on the other hand, are expenses for the future that have not yet occurred.
The sunk cost fallacy is a mental barrier that keeps people from moving on from failed projects just because they invested money in them.
Salaries, insurance, rent, nonrefundable deposits, and repairs are a few examples of sunk costs (as long as each of those items is not recoverable).
Not all fixed expenses are sunk costs, but all sunk costs are fixed costs. Sunk costs are different in that they cannot be recovered. Equipment is not a sunk cost, for instance, if it may be sold again or returned for the original price.
salaries, insurance, rent, nonrefundable deposits, and repairs are a few examples of sunk costs (as long as each of those items is not recoverable).
Not all fixed expenses are sunk costs, but all sunk costs are fixed costs. Sunk costs are different in that they cannot be recovered. Equipment is not a sunk cost, for instance, if it may be sold again or returned for the original price.
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accounts receivable represent . multiple choice question. cash sales made by the business over the period amounts owed to a business by its customers amounts owed by a business to its suppliers
Accounts receivable represents the amount owed to a business by its customers, generally due to credit sales by the business.
The balance of money owed to a business for products or services provided or utilized yet to be payed for by clients is known as accounts receivable (AR). On the balance sheet, accounts receivable are displayed as a liquid assets. Any amount of money that clients owe for transactions they made using credit is known as AR. Receivables, also known as accounts receivable, are a company's line of credit that typically include conditions that call on payments to be received within a somewhat short time frame. A few weeks to a financial or calendar year are usually included.
Due to the customer's legal duty to pay the debt, businesses include accounts receivable as an asset on their balance sheets.
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your company must obtain some laser measurement devices for the next six years and is considering leasing. you have been directed to perform an actual-dollar after-tax study of the leasing approach. the pertinent information for the study is as follows: lease costs: first year, $80,000; second year: $60,000; third through sixth years, $50,000 per year. assume that a six-year contract has been offered by the lessor that fixes these costs over the six-year period. other costs (not covered under contract): $4,000 in year-0 dollars, and estimated to increase 10% (in terms of actual dollar amount) each year. effective income tax rate: 40%. if the real marr (ir) after taxes is 4.5% per year and the annual inflation rate (f) is 7.194% per year, what is the actual-dollar after-tax equivalent annual cost for the leasing alternative?
Equivalent annual value (EAC) is the annual value of owning, operating, and retaining an asset over its complete life.
EAC is often used by firms for capital budgeting decisions, as it lets in a business enterprise to examine the cost-effectiveness of a variety of belongings that have unequal lifespans.
What is the annual equal analysis method?Equivalent annual really worth evaluation is one of the most used analysis strategies for the evaluation of investments. The foremost procedure is to convert any cash go with the flow to an equivalent uniform cash flow. Later, the decision is given taking the monetary class of the hassle into account.
The Annual Equivalent Rate (AER) is the price of pastime after taking into account the results of compounding to normalize the pastime rate. The AER is the authentic activity rate an investment, loan, or financial savings account will yield after accounting for compounding.
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https://brainly.com/question/25343720#SPJ4Why should the interest rate be of concern to you if you are going to purchase a car or
house in the future? (explain in 4 sentences)
Borrowing money is more expensive when interest rates rise and cheaper when interest rates are so low. Make sure you fully comprehend how the rate of interest will impact the total sum you owe before accepting a loan.
The financial decisions you make are impacted by interest rates. Some of these are simple to understand; for instance, consider the amount of money you would deposit into your bank account if it offered 15% interest as opposed to 0.5%.
What is interest rate?
The yearly cost of a debt to a borrower is referred to as the interest rate and is indicated as a percentage. APR represents the total yearly cost of a debt to the borrower, including all fees. The APR is stated as a percentage, just like an interest rate.
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part of the argument against deficits is that they a. decrease interest rates and investment. b. decrease interest rates and increase investment. c. increase interest rates and investment. d. increase interest rates and decrease investment.
Part of the argument against deficits is that they decrease interest rates and investment.
When governments run a budget deficit, they borrow more. Increased government borrowing increased demand for loanable funds and the interest rate goes up. Higher interest rates reduce private investment. This is called the 'crowding out effect'.
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