When the price ceiling applies in this market and the supply curve for gasoline shifts from S₁ to S₂ a shortage will occur at the new market price of P₂.
Gasoline will be in limited supply at the new market price of P₂ when the price ceiling takes effect in this market and the supply curve moves from S₁ to S₂ produce a labor shortage, increase unemployment, and have a significant impact on the teenage labor market.
Price ceilings stop a price from increasing above a specific threshold and amount required will exceed the quantity provided when a price ceiling is set below the equilibrium price, leading to excess demand or shortages.
There is less need for gasoline because more vehicles are fuel-efficient. As a result, the demand for oil and gasoline shifts to the left and the equilibrium price and quantity decrease as a result of the supply curve changing downward as the demand curve does.
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Which one of the following is not a primary component of an internal control system?
a. Information and communication
b. Monitoring
c. Financial pressure
d. Control environment
e. Risk assessment
The following is not a primary component of an internal control system Control environment .
The primary cause of inner controls is to assist safeguard an corporation and further its objectives. internal controls characteristic to limit risks and shield property, make certain accuracy of facts, sell operational efficiency, and inspire adherence to policies, rules, regulations, and legal guidelines.
Internal controls are techniques designed to help guard an enterprise and limit danger to its objectives. inner controls decrease risks and guard belongings, ensure accuracy of statistics, sell operational performance, and encourage adherence to policies, policies, policies, and laws.
Determining whether a specific internal manage machine is effective is a judgement because of an assessment of whether the five additives - manage surroundings, risk assessment, manage sports, information and communique, and tracking - are present and functioning.
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Intellectual property laws protect trade secrets such as formulas and computer source codes. t or f?
The statement - "Intellectual property laws protect trade secrets such as formulas and computer source codes" is true.
What is Intellectual property?Intellectual property is a type of property that incorporates intangible human intelligence creations. There are many different sorts of intellectual property, with some governments recognizing more than others. Patents, copyrights, trademarks, and trade secrets are the most well-known categories.
Trade secrets, unlike patents, are protected in intellectual property laws without registration; that is, trade secrets do not require any procedural formalities to be protected. A trade secret can be kept private indefinitely unless it is discovered or legitimately obtained by others and exposed to the public.
Therefore, it can be concluded that the statement mentioned above with regard to intellectual property laws is true.
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what is the credit yield spread between baa corporate bond yield relative to yield on 10-year treasury? please pay attention to the inverted yield curve.
The credit yield spread between BAA corporate bond value relative to yiels on 10-year treasury is 1% or 100 points.
The yield differential between two debt instruments with the same maturity but different credit quality is known as a credit spread, often referred to as a yield spread. Credit spreads are expressed in basis points, where one basis point equals one percent of a yield differential.
As an illustration, the credit gap between a 10-year Treasury note with a yield of 5% and a 10-year corporate bond with a yield of 7% is said to be 200 basis points. The terms "bond spreads" and "default spreads" are also used to describe credit spreads. A corporate bond and a risk-free substitute can be contrasted using credit spreads.
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in the city of columbia (the capitol and university center, not surrounding suburbs like five points, granby village, and shandon), what is the hazard most likely to damage a home or business?
In the city of Columbia (the capitol and university center, not surrounding suburbs like five points, Granby village, and Shandon), the hazard most likely to damage a home or business is such that Fire Accident, Water Damage, Wind, Hail etc
The most frequent dangers that homeowners and business owners encounter each year are listed below. Additionally, we've provided advice on how to safeguard your property against them.
1) Fire Accident
One of the most severe types of damage is fire damage. It poses a risk to persons residing in a residence as well as the possibility of spreading to other properties.
2) Water Damage
Another frequent threat to homes around the nation is water damage, therefore you must protect your home by carrying insurance. This is essential.
3) Wind
Although wind might not seem like a big hazard, it can damage houses and businesses.
4) Hail
Never undervalue a hailstorm's strength. Hail falls swiftly and forcefully. It might harm your windows, siding, roof, and any surrounding vehicles or other items.
Conclusion
These are only a handful of the most typical harmful forces that pose a hazard to property owners each year. You can be ready with the proper forethought and preparation. Having insurance that covers all of these distinct kinds of harm is also a good idea.
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an organization pursuing a differentiation strategy will pay some employees much more than others and compensation is used to encourage risk taking. t or f
The assertion is true.
Making your business, product, or service distinct from those of other companies in your industry or market area is the focus of a differentiation strategy.
A strong differentiation approach enhances steady brand loyalty, lowers price competition, boosts profit margins, and makes it harder for customers to switch to a competing product.
The company, the price of the good or service, and the good or service itself are three factors that can be different.
Every company must learn to set itself out from its rivals in today's crowded business environment. Leaders cannot just enjoy the brand loyalty of their followers.
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What are the three methods commonly used to distribute door-to-door purchases to customers?
Door-to-door purchases are commonly distributed by the post office, through couriers, or dierctly with the seller at the time of purchase.
Door-to-door purchases or Door-to-door sales are selling activities of goods or services in the consumer's house. Door-to-door sales can be initiated by either the seller or the buyer. Door-to-door sales includes:
Door-to-door salesStreet salesSales demonstrationSales partiesDoor-to-door consists of several stages, such:
ProspectingQualifyingPitchingClosingFollowing-upUntil today, door-to-door purchases is still an effective selling approach. Door-to-door purchases have some benefits, they are:
Allow customers to see productsBuild a customer baseDevelop relationshipDistinguish the brand from other competitorsEnsure people see the brand's offeringsGenerate demandMeasure successProvide a personal approachReveal body language and optimized it as a selling toolSupport market researchUse an adaptable approachUse time effectivelyLearn more about Door-to-Door Purchases here: https://brainly.com/question/1395199
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antiques r us is a mature manufacturing firm. the company just paid a dividend of $11.10, but management expects to reduce the payout by 5 percent per year, indefinitely. if you require a return of 11 percent on this stock, what will you pay for a share today?
$65.91 will you pay for a share today.
Current price=D1/(Required return-Growth rate)
=(11.1(1-0.05)/(0.11-(0.05)
=10.545/0.16
which is equal to
=$65.91(Approx).
A proportion is a unit of fairness possession inside the capital inventory of a organisation, and can talk over with gadgets of mutual price range, constrained partnerships, and real property funding trusts. share capital refers to all of the stocks of an business enterprise.
A share represents a unit of fairness ownership in a business enterprise. Shareholders are entitled to any income that the employer might also earn in the form of dividends. they're additionally the bearers of any losses that the corporation can also face.
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a pair of jeans sells for a total of $65 retail. the costs that make up that price are $6.00 for production, $3.45 for advertising, $4.55 for distribution, $5.05 for taxes, $35.50 for the retailer, and $10.45 net margin for clothing manufacturer. the $35.50 the retailer receives is known in business as the ?
A pair of jeans sells for a total of $65 retail. the costs that make up that price are $6.00 for production, $3.45 for advertising, $4.55 for distribution, $5.05 for taxes, $35.50 for the retailer, and $10.45 net margin for clothing manufacturer. the $35.50 the retailer receives is known in business as the
[tex]-140.0075%[/tex] percent
Selling price = [(Cost) ÷ (100 - percentage business)] × 100.
[tex]65 = $6.00+ $4.55+, $5.05+$35.50 +$10.45/(100[/tex]-%)*100
[tex]0.65=61.55/(100-[/tex]%)
business %=-[tex]140.0075[/tex]%
The selling price is the cost a customer pays for a good or service. An organization or enterprising entity engaging in commercial, industrial, or professional activity is referred to as a business. A product's or service's cost can change depending on how much customers are prepared to pay, how much the seller would accept, and how competitive the pricing is in relation to other companies offering similar goods or services. Businesses can be nonprofit organizations or for-profit enterprises.
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What is an interest group in government ?
Interest Group is a collection of people who share a common interest or attitude and seek to influence government for specific ends. They usually work within the framework of government, and try to achieve their goals through tactics such as lobbying.
Interest groups, otherwise called specific Interest groups, support gatherings, or tension gatherings, are relationship of individuals or associations that are normally officially comprised and that expect to influence public arrangement in support of themselves in light of at least one shared concerns. All Interest groups share the longing to impact administrative arrangement to propel their causes or themselves. Their goal might be a strategy that main advantages a particular arrangement of individuals or a specific area of society (like government sponsorships for ranchers) or an approach that encourages a bigger cultural objective (e.g., further developing air quality). By applying strain on chiefs to change strategy results in support of themselves, they attempt to campaign to accomplish their objectives.
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a three-year bond offers a 10% coupon rate with interest paid annually. assuming a one-year spot rate of 8%, a two-year spot rate is 9%, and a three-year spot rate of 9 1/2%, the price of the bond is closest to:
The price of the bond is closest to $962.50, for a three-year bond offers a 10% coupon rate with interest paid annually.
Since we are given the information of a three-year bond offers a 10% coupon rate with interest paid annually, assuming a one-year spot rate of 8%, a two-year spot rate is 9%, and a three-year spot rate of 9 1/2%,
so for the Year 1: 10% x $1,000 = $100 , similarly
Year 2: 10% x $1,000 = $100
Year 3: 10% x $1,000 = $100
The Present Value of Year 1 Cash Flow: $100 / (1+8%) = $92.59
the Present Value of Year 2 Cash Flow: $100 / (1+9%) = $91.70
The Present Value of Year 3 Cash Flow: $100 / (1+9.5%) = $90.95
So, Price of the Bond = $92.59 + $91.70 + $90.95 = $962.50
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wind power systems is currently able to borrow money via a bond issue at a rate of 13.5 percent per year. this interest rate is referred to as the:
Wind power systems is currently able to borrow money via a bond issue at a rate of 13.5 percent per year. this interest rate is referred to as the cost of debt.
What is cost of debt?
The effective interest rate that a business pays on its obligations, such as bonds and loans, is known as the cost of debt.
A company's capital structure, which also contains equity, includes debt as one component. The capital structure of a company refers to how it uses various funding sources, including debt like bonds or loans, to support its overall operations and expansion.
Understanding the entire rate that a firm pays to employ different kinds of debt financing is made easier with the help of the cost of debt measure. Due to the fact that riskier businesses typically have higher loan costs, the metric can also provide investors with a sense of how risky the firm is in comparison to others.
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Which monetary policy tool is a supplementary tool that sets a floor for the federal funds rate?
The monetary policy tool which is supplementary tool that sets a floor for the federal funds rate is referred as Interests on reserve balance rates.
The IORB rate, or interest on reserve balances rate, is the rate of interest paid by the Federal Reserve on balances maintained by or on behalf of qualifying institutions in master accounts at Federal Reserve Banks beginning July 29, 2021. The Board of Governors sets the interest rate, which is an essential tool of monetary policy.
The Federal Reserve Act of 1913 mandated all depository institutions to hold aside a portion of their deposits as reserves, which might be cash or account balances with a Reserve Bank.
The Act empowered the Fed to establish the requisite percentage for all commercial banks, savings banks, savings and loans, credit unions, and foreign bank branches and agencies in the United States.
These institutions often maintain a Fed account and use their reserve holdings to satisfy reserve requirements as well as to conduct financial transactions such as check and electronic payments, as well as currency and coin services.
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A monopoly make positive economic profit in the long run because
A. can; new technology constantly lowers costs for the monopoly firm and for its competitors
B. can; barriers to entry prevent other firms from entering the market and sharing the profit
C. cannot: other firms will enter the market until all firms are earning zero economic profit
D. cannot: eventually demand will decrease and prices will fall
A monopoly can make positive economic profit in the long run because barriers to entry prevent other firms from entering the market and sharing the profit.
Monopoly market is a market with only one firm produce one product and dominate the whole market. Firms operate in monopoly market are called as monopoly firms. These firm are profit maximizers since has no competition happen in the market. Monopoly firm controls the product price and quantity demanded. Monopoly firm can maximize its profit when the marginal cost equals the marginal revenue.
Monopoly market has high barrier for entry. This barrier prevents new firms to enter the market and secure the original player's market share. Monopoly in the long-run prices and profits can remain high. Monopoly firms can set a greater price than MC which is allocatively inefficient. Monopoly firms tend to produce at equalibrium quantity to productively inefficient. Monopoly firms have fecer incentives to cut costs.
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when firms use multiple sources of capital, they need to calculate the appropriate discount rate for valuing their firm's cash flows as
When a company uses several capital sources, it must determine the proper discount rate for valuing the cash flows of the company as a weighted average of the costs of the capital components.
The cash flow statement (CFS) offers details on the financial transactions, financing sources, and business operations of an organization. The CFS, also known as the statement of cash flows, helps creditors estimate how much cash is available (sometimes referred to as liquidity) for the company to cover operating expenses and pay off obligations.
Since it informs them of a company's financial soundness, investors evaluate the CFS equally. They might use the statement, as a result, to make better, more informed investing decisions.
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Why was the first English dictionary made?
The reason why the first English dictionary was created was to improve communication between people through a common language.
What is a dictionary?It is a book in which you can find a certain number of words organized alphabetically with their explanation and meaning. Dictionaries offer spelling, definition, etymology and meaning.
In earlier times it was considered important to create an English dictionary because many people do not speak the language, so they can know through it the meaning and improve the understanding of messages.
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look at the following two organizational designs and indicate which one you would choose.
A. I want my employees to have very narrow job responsibilities. I’ll hire more people with specific experience next year, and each person will form the basis for future departments in my company.
B. I want my employees to have broad job responsibilities. I’ll hire a small group of employees next year that have multiple skills, and ask them to work on anything that will help the company meet its goals
My ideal employee's job description would be quite specific. The following year, I'll bring on more experts, and each one of them will serve as the foundation for my company's upcoming departments.
Organizational designing: What is it?
The practice of lining up an organization's structure with its goals in order to increase efficiency and effectiveness is known as organizational design. Work can be started due to a new mandate, a need to enhance service delivery or certain business procedures.
What is an example of an organizational design?
Strong organizational culture, trustworthy communication, prompt decision-making, and undistorted communication between the organization and its constituent elements are a few examples. The goal approach is the third indicator. This method evaluates effectiveness by examining how successfully the company accomplishes its objectives.
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assume your gross pay per pay period is $4,100, and you are in the 33 percent tax bracket. calculate your net pay and spendable income if you save $410 per pay period after paying income tax on $4,100.
After-tax saving method, Gross Pay (Tax)=Net Pay, $4,100 - $(1353)= $2747, Spendable Income $2747 - $410 = $2337
The amount of money left over after taxes have been paid is referred to as "spendable income." A individual or family's discretionary income, which can be utilized for future goals like investing, saving, or spending, is what remains after all bills and obligations have been paid. The money you have accessible allows you to spend your discretionary money.
Someone's discretionary income is determined by taking his spendable income and deducting the necessary living costs he has incurred.
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With respect to saving energy, what aspect of using two-sided printing was discussed in class as providing the most signifiant benefit?
The benefit of employing two-sided printing that was highlighted in class as being the most important is that it only requires one sheet of paper as opposed to two when printing a two-sided document.
Standard 2-sided printing can be used to print on both sides of a sheet. You can choose between manual and automatic printing. When printing by hand, even-numbered pages are printed first. After printing these pages, you may simply reload them to print the odd-numbered pages on the opposite side of the paper.
Therefore, double-sided printing can save your business about half as much money as single-sided printing, according to certain important estimates. Due to the fact that duplex printing uses only half as much paper as one-sided printing, businesses can reduce their material costs.
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which process allows industry experts an opportunity to conduct peer reviews of submissions to the ietf?
RFC (Request of comment) is a process that allows industry experts an opportunity to conduct peer reviews of submissions to the Internet Engineering Task Force (IETF).
Internet standards are created by the nonprofit, open-standards Internet Engineering Task Force (IETF). Network designers, operators, vendors, and academics from around the world work together in several working groups. It helps in better functioning of the Internet.
A Request for Comments (RFC) is a publication in a series from the main organizations responsible for the technical advancement and establishment of Internet standards, most notably the Internet Engineering Task Force (IETF). An RFC is written by one or more engineers or computer scientists and takes the form of a memorandum outlining procedures, practices, findings, or inventions relevant to the operation of the Internet and systems connected to it. It is submitted for peer review or to disseminate fresh ideas, knowledge, or perhaps even engineering humor.
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sunshine company had a credit balance of $4,000 in accounts payable at the beginning of the period, and a credit balance of $6,000 at the end of the period. based on this information, the adjustment to net income for the period will be reported as:
Adjustment to net income for the period will be reported as an increase of $2,000 which will be added to net income.
Revenues are subtracted from expenses, interest, and taxes to arrive at the net income (NI) figure. The Net income (NI) is used in the calculation of earnings per share. Investors would be wise to scrutinise the statistics that were used to compute NI due to the fact that accounting practices may conceal certain expenses while inflating revenue figures.
After taking into account the various deductions and taxes that are applied to gross income, NI also indicates the overall earnings of an individual or their earnings before taxes. A person's income that has been reduced by the amount of taxation and other deductions is also referred to as their "net income."
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an alumnus donates securities to a private college and stipulates that the principal be held in perpetuity and income from the securities be used for faculty travel. dividends received from the securities should be recognized as increases in:
An alumnus donates securities to a private college and stipulates that the principal be held in perpetuity and income from the securities be used for faculty travel. dividends received from the securities should be recognized as increases in: Net assets with donor restrictions.
A dividend is a portion of a company's profits and retained earnings that it distributes to its owners and shareholders. When a corporation makes a profit and accumulates retained earnings, those funds can either be invested back into the company or distributed as a dividend to shareholders. The dividend yield is calculated by dividing the annual dividend per share by the share price.
The amount of a dividend is calculated per share, and it must be distributed equally to all shareholders in the same class (common, preferred, etc.). The Board of Directors must approve the payment.
The payment date is the day after the dividend is proclaimed that it will be paid.
How it operates in steps:
The business makes money and keeps its retained earnings.The management team chooses to distribute some excess income to shareholders (instead of being reinvested)The anticipated dividend is approved by the board.The business makes the dividend public (the value per share, the date when it will be paid, the record date, etc.)The shareholders receive the dividend.To know more about dividend:
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A sudden storm threatens the property of Marina Bay LLC. Ngoc, Marina Bay’s sales agent, is on site, but lacks the express or implied authority to bind the firm to the cost of appropriate protective measures. Unable to communicate with Marina Bay, Ngoc? a. has emergency powers to deal with the situation. b. must await the principal’s express ratification to act. c. can imply a power of attorney to assume the needed authority.
The sales agent has emergency powers to deal with the situation. Option a is correct.
What are the responsibilities of a sales agent?A company's sales agent is the professional responsible for mediating relations between the company and its potential customers. This is necessary for promoting the company's products and services through communication, negotiation and persuasion techniques.
In a situation like the one that occurred, that is, when a sudden storm threatens the company's property and the sales agent is the only professional on site, he can act on an emergency basis to establish security measures to prevent further damage to the site.
Therefore, all employees of a company are able to act in an emergency in a situation that poses risks to property or life.
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lichtenfeld has a bond issue outstanding that matures in 19 years. the bonds pay interest semiannually. the bonds have a face value of $1,000 and are currently priced at $995.28. the bonds carry a coupon rate of 3.5 percent. what is the aftertax cost of debt if the total tax rate is 22 percent?
The aftertax cost of debt if the total tax rate is 22 percent is 2.76%
How to calculate the the aftertax cost of debt if the total tax rate is 22 percent?The following information can be deduced:
Semi annual coupon will be:
= 1000 × (3.5/2)%
= $17.5
Putting into a financial calculator;
N = (19 × 2) = 38
PV = -995.28
PMT = 17.5
FV = 1000
Solving for I/Y; we get I/Y = 1.767%
Hence since these are semi annual; yield to maturity will be:
= 1.767× 2
= 3.534%
After tax cost of debt = YTM × (1 - tax rate)
= 3.534 × (1 - 0.22)
= 2.76%
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what is the name of a method that is useful in controlling negative externalities and in reducing the use of common resources to the efficient quantity?
Pigovian tax is the name of a method that is useful in controlling negative externalities and in reducing the use of common resources to the efficient quantity.
How do you control negative externalities?
By taxing products and services that result in spillover costs, the government can deter negative externalities. When a third party incurs expenses as a result of the creation or consumption of a good, this is known as a negative externality. Negative externalities are frequently shown by instances of air and noise pollution.Administration action: Government officials can discourage negative externalities and avoid market failure in three different ways: through taxation, regulation, and stricter environmental laws.To know more about Tax here
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independently-owned businesses that buy from producers, take legal title to the goods, and then resell them to retailers or to organizational buyers are called
independently-owned businesses that buy from producers, take legal title to the goods, and then resell them to retailers or to organizational buyers are called merchant wholesalers.
Merchant wholesalers and specialist wholesalers are the two fundamental kinds of middle people in indirect sales. The fundamental distinction between them is responsibility for items they sell. While merchant wholesalers take the title for the products they sell, specialist wholesalers just acquire commission expenses for their sales.
You can experience both merchant and specialist wholesalers in different enterprises, including clothing, gadgets, furniture, equipment, etc. Notwithstanding, merchant wholesalers are accepted to be the more normal sort of delegates.
The expression "merchant wholesalers" incorporates a seriously enormous assortment of organizations with various qualities. Peruse on to investigate the primary sorts of merchant wholesalers.
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seasonal patterns are associated with the seasons of the year and cannot occur on a daily or weekly basis, o true o false
The statement is false: Seasonal patterns can occur on a daily or weekly basis, not just a monthly or quarterly basis.
Seasonality is present in many time series. Seasonality refers to recurring changes. For instance, retail sales typically reach their peak around the Christmas season before declining afterward. As a result, retail sales time series often show rising sales from September through December and dropping sales in January and February.
Economic time series often exhibit seasonality. In scientific and engineering data, it is less frequent.
Seasonality must be accounted for in the time series model if it exists. This section covers methods for identifying seasonality. Seasonality modeling is postponed until later sections.
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the cares act of 2020 increased disposable income by $600 billion. if consumers spent $400 billion of those income transfers immediately, how much stimulus would those income transfers ultimately provide?
Marginal Consumption Propensity (MPC) = 0.67
Ultimately, such income transfers will produce a stimulus of $1,818 billion.
The marginal propensity to consume (MPC) measures how much a customer will spend more on consumption as their income rises. MPC is the shorthand for the change in consumption brought on by a change in income.
Additional income = $600 billion
Additional consumption = $400 billion
MPC = Change in consumption / Change in income
MPC = 400 / 600 = 0.67
Therefore, Marginal Propensity to Consume = 0.67
Multiplier = 1 / (1 - MPC)
Multiplier = 1 / (1 - 0.67)
Multiplier = 1 / 0.33
Therefore, Multiplier = 3.03
Effect of additional income in economy = Additional income x Multiplier
Effect of additional income in economy = 600 * 3.03 = 1818
Therefore, the effect of additional income in the economy = $1,818 Billion
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g jones corp. reported current assets of $186,000 and current liabilities of $130,500 on its most recent balance sheet. the current assets consisted of $63,400 cash; $45,100 accounts receivable; and $77,500 of inventory. the acid-test (quick) ratio is:
Jones corp. reported current assets of $186,000 and current liabilities of $130,500 on its most recent balance sheet. the current assets consisted of $63,400 cash; $45,100 accounts receivable; and $77,500 of inventory. the acid-test (quick) ratio is 0.83: 1.
In financial accounting, a balance sheet is a summary of the financial balance of an individual or organization, whether it is a sole proprietorship, partnership, corporation, limited liability company, or other organization such as a government or non-profit organization.
A balance sheet provides an overview of a company's financial position (usually at the end of the quarter or year) and shows the company's cash or debt amounts.
A balance sheet is a financial statement that contains information about a company's assets or liabilities at a point in time. This is one of the three main financial statements (the income statement and the cash flow statement are the other two) used to assess a company's performance.
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One of the major benefits gained by a firm entering the international market is the ability to achieve a competitive advantage through location.
a. True
b. False
True, the ability to get a competitive edge through location is one of the major advantages a business will experience once it enters the global market.
Advertising a company's goods, brand, or services to a global consumer is known as global marketing. Planning, advertising, and concentrating a product or service on the requirements of potential customers in other nations are all elements of the process. Industries that use worldwide marketing include those that manufacture quickly consumable commodities, such as fast food, apparel, automobiles, and banking.
To succeed there, a company's brand needs to connect with the local populace. As a result, companies who are open to experimenting with new goods and regional marketing strategies usually experience higher returns on their investments.
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What is the short-run effect on output and the price level of the Fed pursuing expansionary monetary policy?
Choose 1 answer
They both fall.
They both rise.
Output fall and the price level rises.
Output rises and the price level fall.
The short-run effect on output and the price level of the Fed pursuing expansionary monetary policy is that they both rise - working with the demand curve, a shift to the right, and both go up.
In the short run, a firm's output, wages, and prices do not always have complete freedom to change in order to accomplish a goal. Since there are no fixed costs in the long run, a firm's production components can find equilibrium. A company's production outputs can be coordinated to generate profit for the business.
Reduced reserve requirements for banks, increased purchases of government assets, and lower interest rates are the three tools the Federal Reserve uses to conduct an expansionary monetary policy. The goal of expansionary monetary policy is to make it simpler for people and businesses to borrow money and spend it, both of which help to stimulate the economy.
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