Business Investment in Interest Rate †Free Samples to Students

Question: Discuss about the Business Investment in Interest Rate. Answer: Introduction Consumers confidence has already been undermined by the low level of government spending. The cut in government spending is a contractionary policy and thus not good for an economy like Australia that is struggling with the issue of low economic growth. The Australian RBAs cash rate has been lowered to a level that is too low; despite this reduction, the economic growth has been low. It is therefore not certain whether a further interest rate cut would have a significant positive impact on the economic growth. Generally, economists believe that low interest rate is a major promoter of economic growth. It promotes economic growth in that it encourages investors to invest more on businesses by discouraging them from saving. All the capital that the investors fail to save is invested. On the contrary, the impact of low interest rate on the Australian business investment has not been attractive. This paper will consider all the arguments posed by different economists and weigh the possib ility of business investment rising or remaining unchanged after a further drop in the cash rate. It will also determine how high level of business investment impacts the aggregate demand, the real GDP and Price level. The lower cash rate will definitely result in increased business investment if not accompanied by other economic issues. The discouraged investors will be attracted to invest by the low interest rate. Maguire (2017) noted that the acquisition of capital is dependent on the interest rate offered; businesses would find it to repay their loans when the rates are lower. According to Pettinger (2016), lower interest rate discourages savings since the returns gained from saving declines and thus consumers prefers spending over saving; part of this spending goes to investment. An interest rate of close to zero as is the case for Australia makes the interest income from savings to be close to zero; this may offset the positive effects of the reduction in interest rate because people such as savers who rely heavily on saving will have no income to make demand. However, this would make such savers to quit saving and withdraw their bank deposits and invest in risky investments such as stocks (M adura (2014). There is plenty of money supply in the economy whenever the interest rate is lower. This creates a need for the banks to lend more; they can only do this by in turn lowering their interest rate to make the loans more attractive such that the demand for the loan goes up (Duff, 2017). The low interest rate causes the loan borrowing costs to fall. Thus, Financing Manufacturing, operations and distribution of goods and services become cheaper. This in turn makes the price on goods and services to fall. Consumers therefore benefit from these low prices and their demand rises; a higher demand subsequently stimulates investment in that there is an expanded market for the produced goods. Households and investors take this chance to borrow loans to repay their debts; thus there is more funds available for investment. The initial interest rate level is r1 and the business investment at this interest rate level is BI1. A reduction in the interest rate from r1 to r2 results in the business investment rising from BI1 to BI2 (Madura, 2012). The lower cost of using capital increases the number of business opportunities that need to be funded. The argument here is that consumers and investors spending has already been discouraged; the discouragement has resulted from a reduction in money in the economy after the government reduced it spending. However, an expansionary monetary policy will have a similar impact to a high level of government spending. Thus a low interest rate will increase the money in the Australian economy and the consumer and investors confidence will be restored. Duff also noted that interest cycles are important for businesses. They time when the interest rate are lower to expand their businesses. Business expansion results in more people being employed and higher wages are offered, this stimulates the economys demand. Their increased spending will stimulate business investment. The low interest rate will also lead to a decline in the Australian exchange rate which will make its export more competitive and thus a need to increase production. Consumers will take the advantage of the low rate to invest in assets that would increase their wealth. According to Bagus (2015), lower interest rate makes some projects to be profitable that would otherwise have been unprofitable. The Impact of a Rise in Business Investment on the Aggregate Demand Assuming that the reduction in interest rate has succeeded in raising the business investment, it is expected that this will subsequently influence the aggregate demand. An increase in business investment causes the aggregate demand to rise; this is because business investment is one of the components of the aggregate demand. The other components include; consumption, government spending and the net export. The equation for the aggregate demand is given by;where (X M) is the net export (Mankiw, 2016). Any addition of the right hand side components is reflected on the left hand side component. The increase in aggregate demand causes a right ward shift of the Aggregate demand curve (Sexton, 2015). To show the changes in the aggregate demand, a graph of the general price level against the real GDP is plotted as follows; LRAS is the long run aggregate supply curve whereas SRAS is the short run aggregate supply curve. The graph above shows the impact of a rise in business investment from a reduction in interest rate. The impacts rendered above is on three components; one is the demand curve, second is the real GDP, and finally is the price level. The analysis starts from an initial equilibrium level of aggregate demand and Supply. The aggregate demand curves are downward sloping, SRAS upward sloping and the LRAS is vertical. The vertical supply curve represents the maximum production level of the economy. The equilibrium level to start with is point E1 where the price level is P1, the real GDP level is Y1, the Aggregate demand curve is AD1 and the supply curve is SRAS. Increase investment shifts the AD1 curve to AD2. This rightward shift forms a new equilibrium E2. The new equilibrium E2 is at a higher level and is characterized by a higher real GDP level Y2 and a higher price level P2 (Khanacademy.or g, 2017). Thus, a lower interest rate will help in the recovery of the Australian economy. Conclusion It is not effective for the government to lower its spending when its economy is not performing well. The best time to consider lowering the spending is when the economy has picked and the aggregate demand is higher. The government should choose its policies wisely to avoid hurting the economy. Lower interest rate in Australia may will stimulate the business investment but not that much. Any increase in the business investment no matter how small will add to the aggregate demand and the real GDP will rise causing a rise in price. Bibliography Bagus, P. (2015). In defense of deflation. Cham: Springer. Duff, V. (2017). How Do Interest Rates Affect Businesses? [Online] Smallbusiness.chron.com. Available at: https://smallbusiness.chron.com/interest-rates-affect-businesses-67152.html [Accessed 11 Oct. 2017]. Gwartney, D., Stroup, R., Sobel, S., Macpherson, A. (2016). Macroeconomics: private and public choice. Boston, Massachusetts: Cengage Learning. Khanacademy.org (2017). Shifts in aggregate demand. [Online] Khan Academy. Available at: https://www.khanacademy.org/economics-finance-domain/macroeconomics/aggregate-supply-demand-topic/aggregate-supply-demand-tut/a/shifts-in-aggregate-demand-cnx [Accessed 12 Oct. 2017]. Madura, J. (2012). International financial management. Mason, OH, South-Western: Cengage Learning. Madura, J. (2014). Financial Markets and Institutions. 11th ed. Cengage Learning. Maguire, A. (2017). How Interest Rates Affect Your Small Business. [Online] QuickBooks. Available at: https://quickbooks.intuit.com/r/financial-management/how-do-interest-rates-affect-your-small-business/ [Accessed 12 Oct. 2017]. Mankiw, G. (2016). Brief principles of macroeconomics. Boston MA: Cengage learning. Pettinger, T. (2016). Effect of lower interest rates. [Online] Economicshelp.org. Available at: https://www.economicshelp.org/blog/3417/interest-rates/effect-of-lower-interest-rates/ [Accessed 11 Oct. 2017]. Sexton, R. (2015). Exploring Economics. 7th ed. Australia: Cengage Learning.

The Molly Maguires

The Molly Maguires developed as the active secret terrorist organization based on the idea of struggling with the capitalist mine owners. The representatives of the Molly Maguires had the Irish origin and followed Catholicism. The organization acted within the Pennsylvania coal region famous for its anthracite mines during the 1860s-1870s. Thus, the ethnic and religious principles and differences were accentuated.Advertising We will write a custom essay sample on The Molly Maguires specifically for you for only $16.05 $11/page Learn More According to the legend associated with the organization’s name, the Irish miners referred to the name of the Irish Catholic woman Molly Maguire who was rather persistent while opposing to the Irish and English Protestants because they intended to remove the woman from the house because of her faith (The Molly Maguires (1970), 1999). The Molly Maguires could work for â€Å"The Ancient Order of the Hibernians†, the influential secret organization. The Molly Maguires acted as the protectors of the miners’ rights, but the methods used were rather violent. There is no single idea about the ideology of the society’s members or justification of their actions because they were oriented toward using terrorist techniques, murdering mine owners, organizing riots, and attacking police as the ways to act for the workers’ interests (The overthrow of the Molly Maguires, 2013). Thus, the activities’ purpose was to overcome discrimination against the Irish working class of miners. The organization depended on the developed structure and leadership of John Kehoe, the King of the Mollies (Boyer Morais, n.d.). To stop the society’s activities, the U.S. police developed the plan to integrate James McParlan, a detective, into the organization. During the months, McParlan worked to prevent violent murders and crimes and to gather the evidences against the society’ s members. The year of 1876 became the year of trials against the Molly Maguires. The activities of the society’s members were discussed as violating all the ethical and legal norms, and to contribute to declaring the sentences quickly, the Irish juries were removed during the trials (Linder, 2010). The events associated with the Molly Maguires are discussed as evidences of discrimination against the Irish people and workers as the class, first signs terrorism, and development of trade unions. References Boyer, R., Morais, H. (n.d.). The Molly Maguires. Web.Advertising Looking for essay on history? Let's see if we can help you! Get your first paper with 15% OFF Learn More Linder, D. (2010). The Molly Maguires trials: An account. Web. The Molly Maguires (1970). (1999). Web. The overthrow of the Molly Maguires. (2013). Web. This essay on The Molly Maguires was written and submitted by user Sariah Z. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here. The Molly Maguires

Superman and Me vs. Bodega Dreams Essay Example

Superman and Me vs. Bodega Dreams Paper 1 Makeitha C Mrs. Rogers ENC 1102, 4:05 November 29th, 2011 Culture vs. Education Culture is an essential element that can impact the way a person sees the world and processes information. â€Å"Superman and Me,† by Sherman Alexie and â€Å"Bodega Dreams,† by Ernesto Quinonez, examines the importance of education and the impact it has on cultures. In â€Å"Superman and Me† the narrator tells a story about an Indian boy who teaches himself how to read and write at the age of 3 years. Despite the challenges he was face with living on an Indian Reservation, he remained motivated and interested in gaining more knowledge in reading and writing. Bodega Dreams,† by Ernesto Quinonez the narrator tells a story about two young Latino boys and their experience together in Junior High school. The young boys are in English and Science class together. Although the boys are not motivated about school, there teacher’s (Mr. Blessington and Mr. Tapia) try different me thods to keep them motivated and focus in school. These two stories will debate how culture influences children view point in education. In the story â€Å"Superman and me† the narrator details methods he uses to learn how to recognize a paragraph and picture read using a Superman comic book. The narrator explains how he was very motivated about learning to read and write. The narrator seemed to be a very driven man who knew exactly what he wanted, and was willing to do whatever it took to achieve his goals. The narrator expresses himself with self-confidence by stating, â€Å"I am smart. I am arrogant. I am lucky. I want to save my life (209-210). † Being an Indian boy who lived on a reservation, he felt many people were expecting him to fail in the non-Indian world and he was determined to prove them wrong. The narrator states, â€Å"I never was taught how to write poetry, short stories, and novels. † â€Å"I don’t recall a guest teacher visiting the reservation (210). 2 The narrator tells how he was enthused about reading and the different methods he used to learn the words. He tells about the many struggles he had to endure because he was different, he was not ashamed to show his intelligence. He explains how his Indian peers were afraid to show their intelligence by not speaking out in class or around other peers. The narrator argues that Indian children are stereotyped as unintelligent failures. We will write a custom essay sample on Superman and Me vs. Bodega Dreams specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Superman and Me vs. Bodega Dreams specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Superman and Me vs. Bodega Dreams specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The issue is the author wants readers to recognize that Indian children were not well educated in reading and writing, they needed to be encouraged to read and write, and exposed to more literature. The Indian children lacked motivation in learning to read and write. They were comfortable with just knowing powwow songs and jokes. The narrator wanted the Indian students to see the importance in reading. He wanted them to understand reading is more than just the reading of words, but a way to survive in the non-Indian world. The narrator states he eventually grew up and became a successful author/writer. He devotes his time working with Indian children and assisting them with reading and writing their own stories. Although the narrator tells about the struggles he had growing up on a reservation knowing how to read and write, he decides to give back to his community. The narrator teaches Indian children creative writing hoping they will change the perception about school and develop confidence and motivation like he did. Ernest Quinonez’s â€Å"Bodega Dreams† the narratora young Latino boytells a story about an experience he had in Junior High school and the kind of relationship he had developed with his Science teacher (Mr. Tapia) and English teacher (Mr. Blessington). In the story the narrator tells how Mr. Tapia and Mr. Blessington interact differently with their students. The narrator explains how Mr. Blessington is not one of his favorite teachers. The narrator states, â€Å"He kept telling us boys were all going to end up in jail and all girls were going to end hooking (167). † The narrator explains how he is bored with listening to the Robert Frost poem in his class. The narrator states, â€Å"He was one of those upper-class people who thinks highly of themselves†¦and have chosen to â€Å"help† poor kids from the ghetto (167). In Science class his teacher, Mr. Tapia, is inspiring to him. The narrator explains how Mr. Tapia encouraged his class to do their work. He felt all his students had the potential to do well. In the story the narrator enjoyed challenging the teacher’s with questions just to get off task. The narrator’s friend (Sapo) had the same classes toge ther. 3 Sapo was very quiet and kept to himself until one day the Mr. Blessington approached him with a question. The narrator claims Sapo did not make an effect in class due to Mr. Blessington negative comments he makes towards him and his peers. Mr. Blessingon was not pleased with Sapo’s attitude. Mr. Blessington and Sapo begin exchanging words which lead them to a heated discussion and a physical altercation. Mr. Blessington lost control and Sapo released anger. In the story Mr. Tapia tried to save Sapo by telling Sapo to lie about the altercation. Sapo did what Mr. Tapia told him to do in order to avoid the detention center. The incident eventually changed Sapo’s persona. The young Latin boy was put in a position to where he lost control and it changed his whole outlook on life. In this story the author argues that a person’s childhood environment often determine his or her character and life path. In the story the narrator provided evidence of how the students had supportive teachers and how their teacher’s encourage the students to be successful. Mr. Tapia and Mr. Blessington exposed their students to a variety of poetry and literature, and allowed them opportunities to complete their work either at home or in school. The stories share common points about the importance of reading and writing. In order for an individual to be successful in school is by making an effort and attempting to do the work. In â€Å"Superman and Me† the Indian boy wanted to be successful by taking matters in his own hands by teaching himself how to read and write. In â€Å"Bodega Dreams† the characters in the story were not interested in learning or doing their assignments, which became a disappointment to their teachers. I think the Indian children have a valid reason to feel conquered by their abilities to learn. Their cultural upbringing can be a factor which often causes them to lose interest in reading and writing. When teachers are working with children it’s important that they are sensitive to the students’ needs, respect each child’s differences and culture, and be more mindful of their position in society. Providing support and positive guidance is the key when working with children and helping them become more involved in school. 4 In closing, these stories have a valid point and will stimulate more readers to think about the importance of culture and education. Stereotyping and prejudice can have a negative effect on children. Adults must remember children are in a vulnerable position. Allowing children to explore and have access to different learning materials will help them gain more knowledge. Respecting different cultures and communicating with children in positive ways will help develop self-confidence and help them have a better outlook on life. 5 Works Cited Alexie, Sherman. â€Å"Superman and Me. † Reading Literature and Writing Argument. 4th ed. Missy James and Alan Merickel. Upper Saddle River, NJ: Prentice Hall, 2011. Print Quinonez, Ernest. â€Å"Bodega Dreams. † Reading Literature and Writing Argument. 4th ed. Missy James and Alan Merickel. Upper Saddle River, NJ: Prentice Hall, 2011. Print.

10 Types of Wordplay

10 Types of Wordplay 10 Types of Wordplay 10 Types of Wordplay By Mark Nichol Humorous works of fiction are easily enlivened when the author resorts to one or more of the following categories of playing with prose: 1. Acronyms: An acronym is an abbreviation consisting of a string of initial letters pronounced as a word. Fictional examples, such as SPECTRE (for â€Å"Special Executive for Counter-intelligence, Terrorism, Revenge, and Extortion†), from the James Bond novels and films, and VILE (for â€Å"Villains’ International League of Evil†), from the Carmen Sandiego computer-game series, can be serious or humorous depending on formation and intent. 2. Anagrams: An anagram is simply a word with its letters scrambled in a new order. Many humorous phrases have been derived by scrambling expressions or people’s names, such as forming â€Å"I am a weakish speller† from â€Å"William Shakespeare.† (Anagram generators can be found on the Internet.) 3. Chronograms: A chronogram is a phrase in which constituent letters also express a number, as in â€Å"My Day Closed Is In Immortality,† an epitaph for England’s Queen Elizabeth I in which the first letter of each word corresponds to a Roman numeral; the numerical sequence, MDCIII, is translated as 1603, the date of her death. A weak variant is a habit of filmmakers (or, more accurately, film marketers) of replacing one or more letters in a movie title with a number vaguely resembling the letter or otherwise related, as in the title of the 1995 crime thriller Seven, represented on posters as Se7en. 4. Initialisms: Initialisms are distinguished from acronyms by the fact that the constituent letters are pronounced individually, rather than sequentially sounded as if they were a single word. Many popular social-networking terms such as LOL (â€Å"laugh out loud†) and ROTFL (â€Å"roll on the floor laughing†) are initialisms; so is TEOTWAWKI (â€Å"the end of the world as we know it†). 5. Lipograms: A lipogram is a composition deliberately consisting of words lacking a letter of the alphabet. Such a work is more or less easily accomplished depending on the letter selected for omission; many writers, astonishingly, have written novels produced without recourse to use of a common letter such as e or t. 6. Malapropisms: This type of wordplay refers to misuse of one word for another by those too ignorant to recognize the error. It’s named after Mrs. Malaprop, a character in an eighteenth-century play who is notorious for such unwitting utterances, as exemplified by the character’s line â€Å"She’s as headstrong as an allegory on the banks of Nile.† Shakespeare also employed such humor, most notably in lines by the character Dogberry in Much Ado About Nothing such as â€Å"Our watch, sir, have indeed comprehended two auspicious persons.† 7. Mondegreens: Misunderstood song lyrics are often referred to as mondegreens; the term itself is based on a mishearing of the phrase â€Å"laid him on the green.† A more recent example is â€Å"Excuse me while I kiss this guy,† rather than â€Å"Excuse me while I kiss the sky,† from the Jimi Hendrix song â€Å"Purple Haze.† 8. Onomatopoeias: Onomatopoeias (the term is from the Greek words for â€Å"make† and â€Å"name†) are words that imitate sounds, such as splash or bump. A notable example of an onomatopoeic proper name is that of the Houyhnhnms, the sentient, civilized horses from Jonathan Swift’s Gulliver’s Travels. 9. Portmanteaus: Portmanteaus, words creating by combining two words and their meanings into one, were named and popularized by Lewis Carroll. He coined several, such as slithy (from lithe and slimy); more recent examples include brunch and smog. (Carroll named the form of wordplay after a word for a suitcase with two separate compartments.) 10. Spoonerisms: The term for expressions in which initial letters, or sometimes entire syllables or words, are transposed is based on the name of a British clergyman supposedly prone to such utterances, though many attributed to him were only inspired by him. Among them is â€Å"a well-boiled icicle† for â€Å"a well-oiled bicycle†; John Lennon is credited with coining a variation on â€Å"Time heals all wounds†: â€Å"Time wounds all heels.† Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Vocabulary category, check our popular posts, or choose a related post below:50 Incorrect Pronunciations That You Should AvoidConfusing "Passed" with "Past"Confusion of Subjective and Objective Pronouns

Arab learners of English Avoid using phrasal verbs Research Paper

Arab learners of English Avoid using phrasal verbs - Research Paper Example Such an observation has been made on the basis of wide ranging studies conducted by various researchers in this regard. As mentioned earlier, recently there has been observed a trend, which indicates the avoidance of phrasal verbs by Arab learners of the English language. Several papers and research articles have focused on this phenomenon which indicates such an avoidance (Kano (2006), Tarone (1981), Kleinmann (1977), etc.) as well as the manner of avoidance i.e., semantic, topical, lexical, phonological, morphological, graphological or void, (Brown,1994). This trend, hence, has been identified as a classic problem or issue of concern among the researchers in the field of linguistic studies. However, consensus on the actual occurrence and the reasons behind such a trend is yet to be arrived, owing to the differing views presented by various researchers. For instance, Schachter (1974) who first observed such avoidance behavior claimed that the learners, who resorted to avoid usage of phrasal verbs, did so, owing to difficulties in constructing sentences using such verbs. Researchers such as Klienmann (1977), Chiang (1980), Dagut and Laufer (1985) etc supported the claims made by Schachter, that the avoidance was mainly on account of difficulty experienced by the learners with respect to structure and semantic aspects of the target language. While yet others such as Seliger, (1989) argues that, there is no clear definition of avoidance and further states that avoidance can only occur in situations wherei the learners are able to form a target structure but lack knowledge regarding appropriate distributional rules. The native language plays a significant role in influencing the manner in which a learner produces different structures. This claim was substantiated by Kleinmann (1977) in his experiments whereby he studied a group of Arabic speakers as well as Spanish / Portuguese speakers with regard to the use of passives, present

Outline and discuss the different kinds of barriers to learning and Essay

Outline and discuss the different kinds of barriers to learning and participation faced by disabled children and young people wi - Essay Example However, there are calls to improve the deaf education by addressing the various challenges deaf children and young people come across. Schools, governments and the society have working towards better deaf education in most countries. The deaf education has been improving over the years, but the challenges are still there for deaf children and young adults in their quest for education, and only time will tell whether the current calls for more improvement and addressing challenges will be successful in making their education even better. The deaf education can be credited to an Italian physician, Geronimo Cardano who was born in the 16th century in Milan Italy. Geronimo claimed that the deaf were as smart as the hearing people only that they could not communicate with the others. He proposed that the deaf be taught just like the hearing people. Rather than normal communication, Geronimo proposed that the deaf be taught to use symbols and signs as a way of communicating their feelings to the others. This proposal was well taken by Juan Pablo de Bonet who created the first ever sign language book in 1620. This made the deaf education to spread fast across France leading to the establishment of the first deaf education school by Charles Michel de L’Eppe. ... Deaf people continued to be taught how to communicate to the rest of the society using this sign language. This has continued to the current times. School, colleges, experts and government alike have started appreciating that deaf education is important to the people with hearing problems. Parents with deaf children are advised to take their children to these special schools (Winzer and Mazurek, 2000). Though deaf education is yet to be like main stream education, at least there are some improvements. There have been significant events in history that have really impacted the deaf education. They are; Abraham Lincoln signing in to law the enabling act which was meant to improve education of the deaf. This was followed by the opening of the National College for the deaf and dumb in 1864. The invention of the electrical hearing aid in 1892 to allow the deaf to communicate with the other people in the society, phone for the deaf invented in 1964 and the signing of the disabilities act i nto law which was meant to ensure that the disabled have right to education, employment and equality (Rotatori, Obiakor and Bakken, 2011). Lack of enough funding for deaf education is the great threat to the deaf people. A cross check in several countries shows that deaf schools are closing. According to the National Association of the deaf, most states in the United States are cutting funding for deaf education. Most of the national and state governments across the world are focusing on cutting their expenses. They are removing what they deem not necessary as the world has been a recession. Deaf education programs are some of the items that are not a priority for most governments. The

Marketing communication Plan for Aer Lingus Essay

Marketing communication Plan for Aer Lingus - Essay Example The major focus of the airline is on B2B. In order to collect information, the company should use more social media. Moreover, it has been recommended that the company should focus on B2C as well. The main reason is that the B2B is a small customer size segment as this will increase its revenues (Dialogue marketing, 2014). The brand image of the airline is professional but affordable. People perceive the airline as a low cost airline and customer expectations average quality service from the airline. The company to increase its brand image and to meet up the customers’ expectations, the management should advertise the qualities and services offered at the given price as well as should promote the brand image while advertising to attract more customers. Culture, Values, and Beliefs: The airline is committed to serve at the central and convenient locations, so that there is large number of passengers travelling. The mission of the company is to connect the Ireland with the world and different countries of the world with Ireland through providing quality services at competitive price. The secondary mission of the airline is to enhance the connectivity for the customers. The company is facing issues as the brand of the airline is not renowned and many people are not aware about the brand, thus it is essential the values are communicated clearly and more widely so that it reaches to a larger audience. The brand awareness of the airline is not strong in the United Kingdom. The perception of the airline is low carrier airline, however it is not the best service providers as compared to its competitors. Thus, this low price perception has been blurred as well due to the offerings of Ryanair and other low-cost airways. The company has limited locations to go and has lower customer retention rate particularly when compared with the competitors. In order to attain all these goals, it is essential to design a