This statement is true. The marginal revenue product (MRP) of a resource is the additional revenue that a firm will earn by using one more unit of that resource.
What is MRP ?The marginal revenue product (MRP) is the additional revenue that a firm will earn by using one more unit of a particular resource. It is calculated by multiplying the marginal physical product (MPP) of the resource by the marginal revenue (MR) of the output that the resource is used to produce. The MRP helps firms to determine how much of a particular resource they should use in order to maximize their profits.Marginal analysis, or how people make decisions on the margins, is the foundation of MRP. A consumer may not necessarily value all bottles of water at $1.50 just because they pay $1.50 for one. Instead, it means that only at the time of purchase, the buyer subjectively rates one extra bottle of water at more than $1.50. Instead of viewing costs and benefits as an objective totality, the marginal analysis examines them gradually.To learn more about MRP refer :
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question content area which of the following will be reported as a long-term liability on the balance sheet? a.accounts payable b.notes payable (due in 11 months) c.accrued liabilities d.none of these choices
notes payable (due in 11 months) will be reported as a long-term liability on the balance sheet.
Notes payable are long-term liabilities that show the cash an organization owes its lenders — banks and other monetary establishments as well as different wellsprings of assets like loved ones. They are long-term since they are payable past a year, however typically in five years or less.
Organizations might acquire these assets to purchase resources, for example, vehicles, hardware and devices that are probably going to be utilized, amortized and supplanted in five years or less.
A few notes payable are gotten, and that implies the leaser has a case on the borrower's resources on the off chance that installment terms are not met. Whenever got, the course of events for reimbursement could be longer.
Notes payable show up under liabilities on the asset report, isolated into "bank debt" and "other long-term notes payable". Installment subtleties can be tracked down in the notes to the fiscal reports.
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if the only two firms in an industry agree to fix the price at a given level, this is an example of: a price extortion. b collusion. c satisfying demand. d price discrimination. e price leadership.
If only two firms in an industry agree to fix the price at a given level, this is an example of b. collusion.
In order to raise or fix prices and decrease output in order to increase profits, sellers may combine, conspire, or come to agreements known as collusion. Context: Unlike the term "cartel," "collusion" does not always call for a formal, either public or private, an agreement between members.
Along with other things, political influence was noted as one of the main causes of collaboration. The most crucial measures to prevent collusion are empowering new contractors, a well-regulated environment, fair competition, and better procurement management.
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your home was recently appraised for $179,000. the balance on your existing mortgage is $115,050. if your bank is willing to loan up to 70% of the appraised value, what is the potential amount of credit available on a home equity loan?
The correct answer is the potential amount of credit available on a home equity loan is $10,250.
What is home equity loan?A second mortgage, or debt secured by your home in addition to the first mortgage you used to purchase it, is what a home equity loan is. Lenders who offer home equity loans will disburse the money in one big amount. When you receive your loan, you immediately begin paying it back with a set interest rate.
It is given in the question that the
Appraised Value = $179,000
Bank willing to loan = 70%
70% of Appraised Value = $125,300
Existing Mortgage = $115,050
Potential Amount of Credit available on home equity loan = $125,300-$115,050 = $10,250
Hence, the potential amount of credit available on a home equity loan is $10,250.
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why might an individual's labor supply curve bend backward? why might an individual's labor supply curve bend backward? as wages rise above a threshold level, firms limit the number of hours that a worker can work. when wages rise, firms hire fewer workers. as wages rise above a threshold level, the individual will decide to work harder. as wages rise above a threshold level, the individual may opt for more leisure time.
The individual's labour supply curve is backwards-sloping because when the salary increases over the threshold level, the individual can choose to spend more time in leisure activities. The right response in this case is option D.
The backwards-bending labour supply curve, on the other hand, happens when an even higher income incentivizes individuals to work less and spend more time in their free time.
We frequently see a supply curve that bends backwards in labour markets. As a result, increased salaries may eventually cause a decrease in the workforce. This happens when workers are enticed by increased compensation to work fewer hours and spend more time relaxing.
Pigeons that peck for grains have labour supply curves that slope upward at low wage rates but bend backwards at higher wage rates as the pigeons become less likely to forgo pecking in favour of other pigeon activities. Rats' and mice's labour supply curves likewise bend backwards.
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in your organization there are high levels of agreement among employees about what they value and high intensity toward these values. this combination produces:
Employees in your firm share a strong sense of commitment to and agreement with a wide range of values. This combination results in a company with a strong culture.
Despite the differences between both cultures, one is not necessarily superior to the other. Each has advantages and disadvantages.
Additionally, an organization might combine these several cultural strands. Knowing where your particular culture belongs will help you determine how your organization's culture may change depending on the particular team or project.
Clan culture, adhocracy culture, market culture, and hierarchical culture were the four types of culture they described.
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the primary risk from incineration is the risk of contaminants leaching from the ash. group of answer choices true false
the primary risk from incineration is the risk of contaminants leaching from the ash is true
What four issues are related to incineration?The practise of incinerating waste, or burning waste, is a popular way to get rid of waste. The amount of trash can be reduced using this technique, but there are some possible dangers. For instance, improper combustion management can result in the production of dangerous byproducts like dioxins, furans, and heavy metals.In addition, some of these dangerous byproducts may be present in the ash produced by the incineration process, and if handled improperly, these toxins may leak into the environment. Therefore, improper management of incineration could result in air and water contamination.Incineration facilities must follow stringent environmental standards and utilise appropriate containment and treatment systems to make sure that dangerous chemicals are not released into the environment in order to limit these hazards.To learn more about incineration refer to:
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how would the federal reserve stimulate the united states economy and reduce unemployment?
The federal reserve can stimulate the United States economy and reduce unemployment by coming up with various monetary policies.
Unemployment is a major issue for not only the United States but many other countries of the world.
In order to enhance or stimulate the economy, various monetary policies can be launched by using the federal reserve in the United States such as purchasing of market assets, lending discounts, etc in order to stable the economy.
The economy can also be improved by introducing various skill courses from which people can learn new skills and get jobs. By doing so, the unemployment rate can be decreased in the United States.
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in exchange for an ownership share, small businesses receive financing from a group of investors known as
In exchange for an ownership share, small businesses receive financing from a group of investors known as venture capitalists.
A venture capitalist, also referred to as a private equity investor, loans money to companies with significant growth potential in lieu for an equity ownership.
This can entail offering seed money or helping start-ups gain access to equity markets so they can expand.
Investments are often made in the venture capital fund by the limited partners of the venture capital businesses that are formed.
Typically, a committee chosen by the fund makes investment decisions. The pooled investor capital is utilized to finance these enterprises in exchange for a large stock participation after potential emerging growth companies have been identified.
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which statement regarding variable overhead variance analysis is true? multiple choice question. the variable overhead efficiency variance may depend on the efficiency of direct labor. the variable overhead efficiency variance uses exactly the same inputs as the direct labor efficiency variance. efficient use of variable overhead results in a favorable variable overhead efficiency variance. variable overhead variances are easy to interpret.
The variable overhead efficiency variance uses exactly same inputs as direct labor efficiency variance statement regarding the variable overhead variance analysis is true.
What is variable overhead?The varying production costs a business incurs while operating are referred to as "variable overhead." As industrial output changes, so do variable overhead expenses. Different from variable overhead are the general expenditures associated with administrative tasks and other operations that have predetermined budgetary requirements. Organizations need to understand variable costs clearly in order to prevent overspending, which can reduce profit margins. They will be able to precisely set prices for future products thanks to this. For businesses to succeed and stay in operation, they must invest money in the development and promotion of their goods and services. The term "overhead" refers to all costs related to operating a firm, such as managers, salespeople, and marketers for both the corporate office and the manufacturing plants.
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the new chairman of the ionian central bank (icb) is preparing for her first board meeting. she is expected to recommend a monetary policy for the board to pursue. she decides to use the taylor rule, which was originally developed for the u.s. federal reserve. ionia's potential gdp is 100 million drachma, but current gdp is 101 million . what is ionia's output gap? ionia's output gap: 2 tools x10y % inflation is running at 1% , but the chairman considers an inflation rate of 3% to be a reasonable goal. what is ionia's inflation gap? ionia's inflation gap: % the taylor rule helps the chairman to determine the target discount rate. fed funds rate. inflation rate. calculate this target rate for ionia, according to the taylor rule. target rate: % the current rate is 4%, so the chairman recommends buying securities. selling securities.
According to the statistics provided, Ionia's output gap will be -4% and its inflation gap will be -1%. Below you can find a detailed explanation of the solution:
We are asked in the question is to calculate the output gap and the inflation gap.
output gap will be:
= (Current GDP - Potential GDP) / 100
= (96 - 100) / 100
= -4%
Since the chairman believes a 3% inflation to be reasonable although inflation is now running at 2%,
We can calculate the inflation gap as:
= 2% - 3% = -1%
Therefore, the output gap and inflation gap will be -4% and -1%.
The "output gap" is a term used in economics to describe the discrepancy between an economy's actual and prospective output.
Whereas, When demand for goods and services outpaces supply due to elements like higher levels of overall employment, increasing trade activity, or higher government spending, there is an inflationary gap
.
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What type of account at a bank would your parents open up to keep money to save for your college educations?
Your parents would open a graduation account at a bank to keep funds to use toward your college costs.
You will be granted permission to open a student bank account. After you complete your study, this account can be converted into a graduate account, which offers additional incentives and perks. Discover how to use this budgeting tool effectively both while you're a student and after you graduate, as well as the fundamental differences between accounts and which one is best for your banking needs. Your graduation account is your last chance to settle outstanding debt without incurring interest. You can set up your graduate account one year after graduating. The second year overdraft limit, which is typically smaller than the first year, will, apply to you if you wait.
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A firm is operating in the United States with only two other competitors in the industry. It is likely this industry would be characterized as:
a. monopolistically competitive.
b. pure monopoly.
c. perfectly competitive.
d. oligopoly.
Option (d), There are only two companies working in the same industry as one in the United States. This sector of the economy is probably an oligopoly.
What does it mean when a market is oligopolistic?A small number of companies compete in an oligopoly market and are aware of how their pricing and production strategies are interdependent. Because there are only a few number of businesses, each one has a respectable level of market power.
Oligopoly occurs when a small number of large enterprises account for all or almost all of an industry's sales. The auto industry, cable television, and commercial aviation are just a few examples of the several industries that display oligopoly.
How can you spot an oligopoly?Oligopolies can be identified using concentration ratios, which determine the proportion of the market that one firm controls. When an industry has a high concentration ratio, economists usually define it as an oligopoly.
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which company acts on behalf of more than 200 universities, bowls, and conferences to negotiate licensing agreements?
To negotiate licensing agreements Company for Collegiate Licensing acts on behalf of more than 200 universities, and bowls.
What exactly is the licensing idea?Definition of licensing: A economic relationship whereby one firm permits another company to manufacture its product in exchange for a set fee. Leasing out your intellectual property, such as your patents, trademarks, copyrights, designs, and other properties, to third parties, is one of the fastest and most lucrative methods to expand your company.
What kind of license is this?By permitting the use of its patented or copyrighted content by another company, a company can make money from licensing agreements, also known as royalties. Songs, sports team logos, intellectual property, technology, and software are a few examples of items that can be licensed.
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two oligopolistic firms forming a cartel will want to set a price so that the cartel produces a quantity that is _________ the allocatively efficient amount.
The two oligopolistic firms forming a cartel will want to set a price so that the cartel produces a quantity that is more than the allocatively efficient amount.
What is meant by oligopolistic firms?
In economics, oligopolistic firms means a small number of firms who realize they are interdependent in their pricing and output policies.
Given,
Here we need to find the missing term in the statement two oligopolistic firms forming a cartel will want to set a price so that the cartel produces a quantity that is _________ the allocatively efficient amount.
As per the definition of oligopolistic firms, if you want to set a price to cartel then the quantity must be higher that means it will be allocatively efficient amount.
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what is the benefit of claiming 0 or 1 withholding allowances on the w-4 form you receive when you start your job?
The advantage of claiming 0 or 1 withholding allowances on the W-4 form you get when you start work If you choose option 0 or 1, more money will be withheld from your paycheck. If you file taxes, you'll probably get a tax refund.
What is a withholding allowance?An exemption that reduces the amount of income tax you need to withhold from an employee's paycheck is known as a withholding allowance. Fewer withholding allowances result in bigger income tax deductions, whereas larger allowances result in smaller income tax deductions. You can choose how much tax you want deducted from your pay each pay month by entering a "0" on line 5. Less tax will be deducted from your paycheck each pay period if you choose to claim 1 for yourself instead. If you claim 0 or 1 allowances, you'll probably obtain a tax refund. Claim two personal allowances for you and one for each dependent you have if you wish to get close towards withholding full exact tax liability.
How many withholding allowances should I claim?If you are single and only have one job, it is normally a good idea to claim one allowance. If you are married and filing jointly, you should only claim one allowance. You would additionally claim one allowance if you filed as the household's head. Come tax season, you'll probably receive a refund. An allowance is a sum of money determined by the contract documents to be added to the agreed-upon payment to cover the expense of specific but unspecified prescribed items.
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David works as a door-to-door salesperson for a company that manufactures electrical appliances. He has just met an elderly couple in their apartment. David is trying to sell an easy-to-use sandwich maker. He has spent 30 minutes explaining its benefits to his customers. He realized that the couple wants to buy the product. Which selling and customer service skill should david possess in order to close the sale?.
David works as a door-to-door salesperson for a company that manufactures electrical appliances, David should possess good listening skills.
What is listening skills. ?Generally, To close the sale, David should possess good listening skills. This means paying attention to the elderly couple's needs and concerns, and addressing any questions or objections they may have.
Additionally, he should be able to effectively communicate the benefits of the product and how it meets the couple's needs.
David should also be able to establish trust and build rapport with the couple by being genuine and honest. He should be able to provide the couple with confidence in the product and the company and demonstrate his expertise and knowledge about the product.
Finally, David should be able to handle any objections or concerns that the couple may have in a professional and reassuring manner. This may involve addressing any objections head-on or finding ways to overcome them.
By possessing these selling and customer service skills, David will be well-equipped to close the sale and leave the couple feeling satisfied with their purchase.
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the owners of gas stations in bigtown are trying to set up a cartel that will raise the price of gasoline. which of the following will increase the chances that the cartel will fail due to cheating by the owners? a all bigtown gas stations face the same costs. b the firms are currently producing as much as they can. c there are only a few gas stations in bigtown. d the stations vary in terms of the services that they provide. e all bigtown gas stations have the same number of gasoline pumps.
The chance that cartel will fail because of cheating by the owners would increase if the gas stations vary in terms of the services that they provide.
A pricing introduction?One of the most crucial elements in the world of trade is pricing. Setting a price for a commodity entails giving the item a value. Both the buyer taking the product and the seller giving it away profit from the "worth" in exchange for some bearing when they buy or sell it. In a similar manner, the consumer pays the seller to purchase the "value" of the product, and the seller sells the thing to recover the "value" of the money spent on it.
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commercial mortgage borrowers may decide to prepay the principal on their loan even if they face prepayment penalties. one way that lenders protect themselves from prepayments in such circumstances is by requiring the borrower who prepays to purchase for the lender a set of u.s. treasury securities whose coupon payments replicate the cash flows the lender will lose as a result of the early retirement of the mortgage. this process is referred to as:
This manner is referred to as Defeasance.
What Is the Defeasance Process?The defeasance method is a capacity with the aid of which borrowers can substitute securities, normally bonds backed by means of the U.S. Treasury, for the present collateral on their mortgage, such as a home or comparable property. It can additionally be used in other types of monetary transactions.
What is a defeasance in finance?A defeasance is a financing device via which remarkable bonds may additionally be retired besides a bond redemption or imposing an open market buy-back. Cash is used to purchase authorities securities.
What is well known defeasance?A preferred defeasance results in the launch of the present mortgage's lien. Yet, in states that impose a major personal loan recording tax — measured by using the primary debt or responsibilities — a defeasance becomes even extra punitive for debtors who desire to refinance their original loans.
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https://brainly.com/question/17253783#SPJ4if total revenue increases when a firm sells more units, then marginal revenue is
If total revenue increases when a firm sells more units, then marginal revenue is positive.
Marginal revenue is the growth in sales that outcomes from the sale of 1 additional unit of output. whilst marginal revenue can continue to be regular over a sure stage of output, it follows from the law of diminishing returns and will finally sluggish down as the output level increases.
Marginal revenue is a significant concept in microeconomics that describes the extra general revenue generated with the aid of growing product income by means of 1 unit.
Marginal revenue is the money a company makes for every extra sale. In other phrases, it determines how a great deal a company might acquire from selling one similarly appropriate.
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on september 6, irene westing purchased one bond of mick corporation at 94.75%. the bond pays 8.25% interest on june 1 and december 1. the stockbroker told irene that she would have to pay the accrued interest and the market price of the bond and a $4 brokerage fee.what was the total purchase price for irene? assume a 360-day year (each month is 30 days) in calculating the accrued interest. (hint: final cost
The total purchase price that Irene paid for one bond of Mick Corporation at 95.25% is $9,554.
What is a bond?A bond is a fixed-income bearing instrument that represents a loan made by an investor to a borrower.
Bonds are usually priced at $1,000. With a discount of 5.25% (100-94.75), the cost of the bond is $9,475 ($1,000 x 94.75%).
The interest accrued on the bond from June 1 to September 6, when Irene bought the bond, is calculated as:-
Face value of the bond = $1,000
Discounted value = $9,475
Interest rate = 8.25%
Interest for six months = $41.25 ($1,000 x 4.125%)
The number of days from June 1 to September 6 is 96 days
∴ Accrued interest = $22 ($41.25 x 96/180)
Brokerage fee = $5
Final cost of purchase = Cost of bond + Accrued interest + Brokerage fee
= $9475+$22+$5
= $9,502
Therefore, $9,502 is the total purchase price of the bond for Irene.
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a retailer needs to purchase 10 printers. the first printer costs $57, and each additional printer costs 3% less than the price of the previous printer, up to 15 printers. what is the total cost of 10 printers?
The total cost to purchase 10 printers was $498.89. C is the right option. this is a question of geometric sequence.
A unique kind of sequence in the number series is a geometric sequence. It is a set of integers where each term is created by dividing or multiplying the one before it by a predetermined quantity called the common ratio.
From the question we have, each additional printer costs 3% less than the price of the previous printer
The first printer costs $57.
[tex]57 ( 1 - \frac{3}{100} )^{n-1}[/tex]
[tex]57 ( 1 - 0.03 )^{n-1}[/tex]
[tex]57 ( 0.97 )^{n-1}[/tex]
The formula for the sum of a geometric sequence is
[tex]\frac{a_{1}(1 - q^{n})}{1 - q}[/tex]
a1 = 57 , q = 0.97 , n = 10
[tex]\frac{57_{}(1 - 0.97^{10})}{1 - 0.97}[/tex] = $498.89
Hence, The correct option is C. $498.89
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The given question is incomplete here is the full question.
A retailer needs to purchase 10 printers. The first printer costs $57, and each additional printer costs 39% less than the price of the previous printer, up to 15 printers. What is the total cost of 10 printers?
A $552.90
B $589.00
C $498.89
D $433.33
amanda wants to be part of the most basic form of ownership for a corporation. she should invest in:
Amanda wants to be part of the most basic form of ownership for a corporation. She should invest in common stock.
What do you mean by the common stock?A security that symbolizes ownership in a firm is called common stock. Common stock owners choose the board of directors and cast ballots for corporate rules. Long-term rates of return are often higher with this type of stock ownership.
On average and over time, common stock has shown to be a fantastic source of returns for investors through capital gains and regular dividends.
Additionally, companies gain from issuing shares since they avoid debt commitments, but some ownership interest is forfeited.
Common Stock = Total Equity – Preferred Stock – Additional Paid-in Capital – Retained Earnings + Treasury Stock.
Therefore, Amanda wants to be part of the most basic form of ownership for a corporation. She should invest in common stock.
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what audit evidence will the auditor need to obtain during the audit to become comfortable with revenue during q4?
The PCAOB's auditing requirements should be followed by auditors of American public firms.
An audits goal is to increase the level of trust that users may place in the financial statements.
The client's obligations for internal control over financial reporting and the financial statements are a crucial part of the process of developing the audit opinion.
There are five steps in the process of developing an audit opinion.
The auditing cycle technique offers a means of segmenting the audit into manageable parts.
The auditor concentrates on a certain cycle's transaction flow, including how transactions are started, approved, documented, and reported.
The audit is made to test management claims during each cycle.
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Beckman enterprises purchased a depreciable asset on october 1, year 1 at a cost of $148,000. The asset is expected to have a salvage value of $16,200 at the end of its five-year useful life. If the asset is depreciated on the double-declining-balance method, the asset's book value on december 31, year 2 will be:.
If the asset is depreciated on the double-declining-balance method, the asset's book value on December 31, year 2 will be $53,280
A double-declining balance method is a type of accelerated depreciation method in which the asset value is depreciated twice as fast as the straight-line approach.
The formula for the depreciation using the double declining method is:
Depreciation = 2 x Cost of the asset X Depreciation rate
Depreciation rate = 1/useful life x 100%
Parameters given in the problem:
Useful life = 5 years.
Cost of asset = $148,000
Hence,
Depreciation rate = 1/5 x 100% = 20%
Depreciation year 1 = 2 x 20% x $148,000 = $59,200
Asset value, December 31 year 1 = $148,000 - $59,200 = $88,800
Depreciation year 2 = 2 x 20% x $88,800= $35,520
Asset value, December 31 year 2 = $88,800 - $35,520 = $53,280
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explain why, in general, it is difficult but important for current oligopoly members to incorporate into the cartel any large producers in the market that are currently operating outside the cartel.
In instance, cartels frequently develop in marketplaces where there are few firms and each firm has a sizable share of the market, which are the same circumstances that lead to an oligopolistic market.a
Oligopolistic businesses join cartels to gain more market sway, and the group's members collaborate to decide on the volume of output and/or price each member will produce. The cartel members might act like monopolists because of their cooperation. For instance, if each company in an oligopoly offers an undifferentiated good like oil, each firm will encounter a horizontal demand curve at the market price.However, if the oil-producing companies band together to set their output and price, like OPEC does, they will all have to contend with a downward-sloping market demand curve, just like a monopolist. The cartel actually makes the same decision to maximize profits as a monopolist would. The cartel members decide on their collective output at the point where their marginal costs and revenues are equal. The market demand curve at the output level the cartel selects determines the cartel price.
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If the Federal reserve and Government are attempting to encourage growth and stimulate the economy, which actions would each take? (monetary / fiscal)answer choices- increase the Required reserve / increase government spending- sell government securities / decrease taxes- decrease the interest rate / increase government spending- buy government securities / decrease government spending
Increase the Required reserve / increase government spending.
What is growth and example?Growth is the physical process of development, particularly the process of becoming physically larger. It is quantifiable, meaning that it can be measured, and it is mostly influenced by genetics. For example, the year that she was 11, Keisha got taller by two inches.
Why is growth important?Successful personal growth is not only about the value to your own life, but value to those around you and the society. Personal growth can help you in all areas of your life. It will help you grow emotionally and psychologically to become a more loving, compassionate, and positive person.
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what groups in the economy are likely to oppose foreign trade? explain why these groups oppose trade.
Economic winners and losers are prone to reject foreign trade since some work hard while others do not.
International trade benefits economies overall, as economists have long contended, and with good reason. However, more commerce is likely to produce both losers and winners. In fact, recent years have seen an increase in public concern over the negative effects of trade and globalisation for certain parts of society, particularly in the setting of a larger context of rising inequality in many countries. In turn, those worries are considered as contributing to the growth of populism in certain affluent nations. Given these developments and the UK's preparations to leave the EU and establish an independent trade policy, it is crucial to comprehend how potential trade agreements or changes to existing trade policy may affect economic outcomes like prices, productivity, and output, which in turn may affect people and places.
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How we can perform elicitation process?
Given that the terms "requirements collection" and "requirements elicitation" are frequently used interchangeably, you might be wondering how the two processes vary.
It is a valid query, and you are free to casually switch them. When addressing the mechanics of the requirements elicitation procedure, it is important to note that there is a small distinction between gathering requirements and requirements elicitation. The act of "eliciting" information from a source is known as "b," whereas the act of "gathering" is known as the act of gathering from dispersed sources. Both actions demand knowledge to carry out correctly and are crucial to the whole requirements elicitation process.
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g the coupon rate is a. the annual coupon divided by the face value of the bond. b. the annual coupon divided by the price of the bond. c. the annual coupon divided by the issue price of the bond. d. equal to the yield to maturity.
The coupon rate is the annual coupon divided by the face value of the bond.
What is the rate?A quantity, sum, or degree is determined in relation to another thing. A price or payment based on another quantity, she typed at a rate of 80 words per minute. in further detail: the cost per insurance unit. In mathematics, comparing two related quantities stated in different units is known as a rate. The ratio's numerator expresses the rate of change for the other (dependent) variable.
The annual income an investor might anticipate while owning a specific bond is known as the coupon rate. The calculation is done by dividing the total of the annual coupon payments by the par value, and it is established at the time the bond is issued. A bond's yield to maturity and coupon rate are equal at the time of purchase.
Therefore, Thus option (A) is correct
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Is it good that inflation rate is low?
If inflation is too low, the economy may be in danger of experiencing deflation, which is a phenomena linked to extremely sluggish economic conditions that involves dropping prices and maybe earnings on average.
Very low inflation typically indicates that consumer demand is lower than it should be, which usually slows economic growth and lowers wages. As we experienced a decade ago during the Great Recession, this poor demand could potentially cause a recession with higher unemployment. Low inflation may be a symptom of a poor economy as it is sometimes linked to economic weakness. People and businesses may be less eager to invest in and spend on consumption when unemployment is high or consumer confidence is low, and this decreased demand prevents them from driving prices up. Typically, when the economy weakens, inflation tends to fall.
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