Product labels on appliances include information on operating to cost assist you in selecting the most energy-efficient models
A product is any item or service you sell to serve a client's want or want. They may be bodily or digital. bodily merchandise encompass long lasting items (like vehicles, fixtures, and computers) and nondurable goods (like meals and drinks).
Excellent products need to have a stable value proposition and solve a actual trouble, be understandable by using users, perform their mission as easily and successfully as possible, and become better and harder to component with the extra they may be used.
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question mode multiple choice question as an employee, which best describes how to define corporate culture? multiple choice question. seeing how people act to achieve career success. paying close attention to the company's profits.
Seeing how people act to achieve career success is the best example of Corporate culture.
What is Corporate Culture?Corporate culture, usually referred to as company culture, is a set of values and activities that govern how management and staff at a firm interact and conduct business with third parties. Corporate culture can significantly affect a company's and its workers' success. An organisation with a strong culture promotes a harmonious fusion of work, personal, and overall goals. It enables you to perceive a person as a complete and assist them in moving forward in the path they desire. Corporate culture can directly affect recruitment, staff retention, teamwork, policy compliance, communication, and change management effectiveness.
Hence, Seeing how people act to achieve career success is the best example of Corporate culture.
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a piece of equipment costs $50,000 and current accumulated depreciation is $10,000. what is book value?
The equipment's book value is $40,000
$50k was spent on the equipment.
Depreciation costs equal $10000.
Equation: Equipment book value = Equipment Cost - Depreciation Cost
= 50000 - 10000
= $40000
What Do Depreciation Costs Entail?
The amortized fraction of the cost of the company's fixed assets over a specific time period is what is referred to as depreciation expenditure. Depreciation expense is recorded as a non-cash expense on the income statement, which lowers the company's net income or profit. Depreciation expense is debited and accumulated depreciation is credited for accounting purposes.
Because periodic monthly amortization does not take place in cash transactions, depreciation costs are classified as non-cash expenses.
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small businesses differ from large businesses when going international primarily in group of answer choices the available participation strategies. the strategies they can use to go international. their founders and entrepreneurs influence. the available multinational strategies.
Large companies have the advantage of being more established and having greater access to funding. Additionally, they enjoy a higher rate of repeat business, which results in greater profits and higher sales than smaller businesses.
When contrasting small businesses with larger rivals?
It is evident that smaller businesses frequently have the ability to provide customer service that is more individualized than that of larger businesses when compared to their larger competitors. Many small businesses in the United States aren't interested in exporting because they don't know where to start.
Extra benefits incorporate lower costs, adaptability to adjust to changing economic situations, center around a restricted market specialty, and notoriety. The high level of stress and the high rate of failure are two of the disadvantages of small businesses.
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a men's tie store sold an average of 30 ties per day when the price was $6 per tie. the same store sold 60 of the same ties per day when the price was $3 per tie. in this case, the absolute value of the price elasticity of demand, is:
According to the given information, the absolute value of the price elasticity of demand, is - 2.0151 (more than 1 but less than 3).
With the midpoint method, the change in quantity is divided by the average of the initial and final quantities divided by the change in price divided by the initial and final prices to determine price elasticity of demand (Ep).
Ep = [tex]\frac{(Q2-Q1)}{(Q1+Q2)/2}[/tex] ÷ [tex]\frac{(P2-P1)}{(P1+P2)/2}[/tex]
Ep = [tex]\frac{(30-60)}{(30+60)/2}[/tex] ÷ [tex]\frac{(6-3)}{(6+3)/2}[/tex]
Ep = - (-60/45) ÷ (3/4.5) = - 2.0151
The negative sign here denotes that the relationship between the change in quantity and the change in price is inverse. As a result, demand's price elasticity is always negative.
A measure of a product's change in consumption in response to a change in price is called price elasticity of demand.If the price elasticity is infinite, then a good is perfectly elastic.A good is elastic if its price elasticity exceeds 1; it is inelastic if it is less than 1.A good is completely inelastic if its price elasticity equals zero (no price change, no matter how small, results in a change in demand).Unitary elasticity refers to price elasticity that is exactly 1 (a change in price causes a change in demand that is exactly the same percentage).Learn more about Price elasticity of demand, here
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communism is an economic and political system in which the state makes almost all economic decisions and owns almost all the major factors of production. group startstrue or false
Communism is an economic and political system in which the state makes almost all economic decisions and owns almost all the major factors of production is the statement false.
What is Communism?Communism is an economic and political system where the state (the government) controls practically all of the key factors of production, including housing for its citizens.The cornerstones of communism are the fair distribution of wealth among a country's population and the communal ownership of all property. In particular, it demanded that the proletariat, or working class, take control of the means of production, such as manufacturing and agriculture. The primary distinction between the two ideologies is that under socialism, all citizens share equally in the economic resources distributed by a democratically elected government while under communism, most property and economic resources are owned and controlled by the state (rather than by individual citizens).To learn more about Communism refer to:
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which mode and class of transportation is most likely to be used for a 500-mile shipment of time-sensitive, fragile products weighing 20,000 pounds?
The most likely mode of transportation for a 500-mile cargo of delicate, time-sensitive goods weighing 20,000 pounds is a truckload truck.
What is mode of transportation?The term "transport mode" describes the methods available for moving people and/or cargo. Rail, marine (sea), and air travel are all possible forms of transportation for both people and commodities.Road transportation, rail transportation, river transportation, and air transportation are the four main modes of transportation. In most of the world, road transportation is the most frequently used kind of transportation. Water transportation is the main mode of transportation in some low-lying places, such as Venice.The several modes of transportation include pipeline, rail, road, air, and water. The field can be divided into infrastructure, operations, and vehicles. The development of human civilization depends on the facilitation of inter-person commerce, which is made possible by modes of transportation.To learn more about mode of transportation refer to :
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if you think that the dollar is going to appreciate against the euro, you should group of answer choices buy put options on the euro. sell call options on the euro. buy call options on the euro. both a and b none of the options
You should purchase call options on the euro if you believe that the dollar will strengthen versus the common currency.
How can currency risk be reduced with options?An alternative strategy for managing currency risk is to create a synthetic forward contract using the money market hedge. currency futures Currency futures are used to hedging exchange rate risk because they trade on an exchange and don't require upfront margin.
What are call and put currency options?A put option grants the right to sell, whereas a call option grants the right to buy. Every time there is a currency exchange, one currency is purchased and another is sold. Taking the opportunity to exchange Indian rupees for US dollars as an example (INR).
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smith furniture manufacture makes the venza model chair with a target selling price of $300. smith furniture wants a desired net profit of 40%. what is the target cost per chair?
The targets cost price per chair will be $180.
What is the cost price?The cost price in retail systems reperesents the particular value that corresponds to the unit price paid. In some stock market theories, this value is utilized to establish the value of stock holdings and is used as a key determinant of profitability.Profit is defined as the difference between the price charged and the costs incurred. Therefore, the cost should be less than the price to ensure that the business is profitable. For instance, the company makes a $6 profit if a customer spends $20 on a product that cost $14 to produce and sell.So, the target cost price will be:
300 - (300 × 0.40)
300 - 120
$180
Therefore, the target cost price per chair will be $180.
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the engineers at wonderful widgets have come up with an idea for a new product. the company has determined that the product fills a market need and that it should generate a profit. now the company wants to see how the product attributes will be perceived by the consumer. how will the company do this?
The business has decided that the product should make a profit since it meets a market need. The business now wants to see
Which marketing strategy aids companies in gathering data for new products and services?Market research: By acquiring data about consumer behavior, both current and potential, and then evaluating and interpreting that data, firms can decide with confidence whether to launch a new good or service.
What features of the product are significant to consumers?Size, color, flavor, container type, and other characteristics that are pertinent to the category are examples of attributes. These characteristics set the consideration set from the consumer's point of view and affect the final purchase choice.
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When consumers are less confident about their jobs or incomes, they are more likely to.
When customers are much less assured approximately their jobs or incomes, they may be much more likely to: Reduce purchases of long lasting items than nondurable items.
The required details for durable goods in given paragraph
A long lasting good or a difficult good or patron long lasting is a good that doesn't quick put on out or, greater specifically, one which yields utility over the years instead of being completely fed on in a single use. Items like bricks might be taken into consideration flawlessly long lasting items due to the fact they have to theoretically in no way put on out. Highly long lasting items such as refrigerators or cars generally remain beneficial for numerous years of use, so long lasting items are generally characterized via way of means of lengthy intervals among successive purchases. Durable items are recognized to shape an vital a part of monetary manufacturing. This may be exemplified from the reality that private costs on durables surpassed the overall cost of $800 billion in 2000. In the 12 months 2000 itself, long lasting items manufacturing composed of about 60 percentage of mixture manufacturing within side the production quarter within side the United States.
Examples of patron long lasting items include bicycles, books, family items (domestic appliances, patron electronics, furniture, tools, etc.), sports activities equipment, jewelry, scientific equipment, and toys. Nondurable items or gentle items (consumables) are the alternative of long lasting items. They can be described both as items which can be right away fed on in a single use or ones which have a lifespan of much less than 3 years.
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suppose the federal reserve sets the reserve requirement at 12%, banks hold no excess reserves, and no additional currency is held.
The money multiplier, based on the information provided, is 8.33 times.
Money multiplier a. Money multiplier is 1 divided by the reserve ratio
multiplier=1 divided by 0.12
8.33 times the multiplier
c. The total money supply is 80 + 8.33.
$666.4 million is the total money supply.
b. The total money supply equals 500 / 8.33.
Total supply of money is $60 million.
Conclusion: The multiplier for money is 8.33.
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which of the following statements is correct? a. multiple irrs can exist, but not multiple mirrs. this is one reason some people favor the mirr over the regular irr. b. if a firm uses the discounted payback method with a required payback of 4 years, then it will accept more projects than if it used a regular payback of 4 years. c. for mutually exclusive projects with normal cash flows, the npv and mirr methods can never conflict, but their results could conflict with the discounted payback and the regular irr methods. d. the npv, irr, mirr, and discounted payback (using a payback requirement of 3 years or less) methods always lead to the same accept/reject decisions for independent projects.
Multiple IRRs can exist, but not multiple MIRRs. This is one reason some people favor the MIRR over the regular IRR.
Why would a project have multiple IRRs?There can be more than one IRR, but not more than one MIRR.This is one of the arguments in favor of the MIRR versus the conventional IRR.Junk bonds are a type of high-risk, high-yield debt.They are frequently employed to fund leveraged acquisitions and mergers as well as to lend money to businesses with uncertain financial standing. When one analyzes cash inflows and cash outflows in the internal rate of return, multiple rates of return occur. The internal rate of return is the present value of cash flows that will result in a project breaking even.If there are many sign changes in a net cash flow stream, the IRRs will vary. If a project has nonstandard cash flows, it may have several IRRs.When cash withdrawals happen after cash inflows have started, this is known as an abnormal cashflow.To learn more about multiple IRRs refer
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samsung placed an ad in rolling stone magazine announcing the galaxy tab, the world's thinnest tablet computer. the ad focused on the benefits that it offered based on common customer needs. samsung is using a(n) objective for its ad.
Samsung would be using an informing objective for its ad, the world's thinnest tablet computer.
Trying to show why this brand is superior to competitors would be the goal of a persuasive argument. To inform, convince, and remind consumers are the three main goals of advertising. Awareness of brands, goods, services, and concepts is raised via informative advertising. It can inform consumers about the characteristics and advantages of new or old items, as well as introduce new programs and products.
New product promotion: When a company has a new product, it may utilize educational advertising to let the public know about the change. The brand may develop knowledgeable consumers who are interested in the product by focusing on the unique attributes of the product—what need or want it might address.
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thomas has agreed to buy a set of vintage stereo speakers from ace pawn shop, inc. (ace). per the terms of their agreement, ace must deliver the speakers to thomas on july 1, and thomas will pay $500 cash to ace's driver immediately upon taking delivery. this is an example of a contract that is subject to .
If thomas will pay $500 cash to ace's driver immediately upon taking delivery. this is an example of a contract that is subject to : concurrent condition .
What is concurrent condition ?Concurrent condition can be defined as the way in which a contract between two or more people is based on condition and example of this condition is that a seller must tend to deliver the goods to a buyer before the seller is paid.
This scenario is an example of concurrent condition based on the fact that both parties in the contract must meet the terms and conditions of their agreement.
Therefore this is a concurrent condition.
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The complete question is:
Thomas has agreed to buy a set of vintage stereo speakers from Ace Pawn Shop, Inc. (Ace). Per the terms of their agreement, Ace must deliver the speakers to Thomas on July 1, and Thomas will pay $500 cash to Ace's driver immediately upon taking delivery. This is an example of a contract that is subject to Multiple Choice O executed conditions O a condition subsequent O an accord and satisfaction O concurrent conditions о recurrent conditions
baran wants to begin drug testing applicants before he hires them to work for his hotel. which of the following is true and sound advice for baran?
a. Baran should begin drug testing because an increasing number of employers are drug testing applicants.
b. Baran should test every applicant in the pool or none at all.
c. Drug testing is prohibited by federal law, but it is permitted in most states.
d. Drug testing is prohibited by law, but alcohol testing is permitted.
Baran should test every applicant in the pool or none at all is true and sound advice for baran.
The applicant is a dramatic caricature written by way of Harold Pinter. At the start written in 1959 and primary published by way of Eyre Methuen in 1961, it became first broadcast on BBC Radio on the 1/3 Programme "among February and March 1964," together with Pinter's other revue sketches, it's Your trouble, it really is All, Interview, and dialogue for 3. A revised and lots-extended model of Applicant is integrated inside the ultimate scene of Act one in all Pinter's play The Hothouse, wherein the person still called Lamb is "tested" in "a soundproof room" via pass over Cutts, the successor of leave out Piffs, and her colleague Gibbs (fifty eight–seventy eight).
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Assume that the price elasticity of supply for good y is 0. 5. If the price of good y decreases by 30 percent, the quantity supplied of good y will.
If the price elasticity of supply for good y is 0. 5 and the price of good y decreases by 30 percent, the quantity supplied of good y will decrease by 15%.
The price elasticity of supply measures how much the quantity supplied changes as the price changes. The law of supply holds since this elasticity is measured along the supply curve, and thus price-elasticity of supply is always positive numbers.
When the price of good rises, the supply of that good rises as well, according to basic economic theory. In contrast, when the price of a good falls, so does its supply.
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select choices which are true about total costs. (select all that apply.) question 38 options: always decreases as quantity increases
Average total cost X quantity. This is because ATC is TC / Q so TC is ATC * Q
(Average variable cost plus average fixed cost) X quantity. This is again through because AVC + AFC is equal to ATC and ATC * Q is TC
Total variable cost plus total fixed cost.
It is not always horizontal because it may contain both fixed costs and variable costs. It may not always decrease or always increase because it depends upon the presence of fixed costs as well as variable costs.
Cost, in common usage, is the financial price of products and offerings that manufacturers and purchasers purchase. In a fundamental monetary experience, the fee is the measure of the opportunity opportunities foregone inside the desire of one excellent or pastime over others.
The two basic types of charges incurred by means of businesses are constant and variable. fixed charges no longer vary with output, whilst variable costs do. constant costs are every now and then referred to as overhead expenses. they are incurred whether a company manufactures one hundred widgets or 1,000 widgets.
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george jefferson established a trust fund that will provide $176,500 per year in scholarships. the trust fund earns an annual return of 2.3 percent. how much money did mr. jefferson contribute to the fund assuming that only income is distributed?
Mr. jefferson contribute to the fund assuming that only income is distributed $7,060,000
What is annual amount?The response is that Mr. Jefferson gave the trust fund $7,060,000
We use the following equation, assuming that the interest earnings are equal to the annual amount of money allocated for scholarships:
The amount of money you make each year is your annual income. Your regular pay as well as any bonuses, commissions, overtime, or tips collected are all included in your income. Gross annual income and net annual income are two different terms that may be used to describe it.Annual interest income / rate of return equals the total trust fund.
= $176,500 / 2.5%
= $7,060,000
Therefore, Mr. Jefferson gave the trust fund a total of $7,060,000 in contributions.
Mr. jefferson contribute to the fund assuming that only income is distributed $7,060,000
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while the economic policies introduced by most newly independent states in sub-saharan africa were generally unsuccessful, what country managed to create a large and diversified economy during the postcolonial period?
South Africa managed to create a large and diversified economy during the postcolonial period.
An economy is a network of interconnected production and consumption activities that ultimately decide how resources are distributed within a community. The needs of persons who live there and operate there are met through the production and consumption of goods and services as a whole. An economy is a region where goods and services are produced, traded, and consumed. It is generally understood to be a social domain that places an emphasis on the behaviors, discourses, and tangible manifestations connected to the creation, use, and management of finite resources. An economy is a network of interconnected production and consumption activities that ultimately decide how resources are distributed within a community. The needs of persons who live there and operate there are met through the production and consumption of goods and services as a whole.
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most airline companies offer frequent flyer programs, which award points based on the number of miles flown with the airlines. the points can then be exchanged for free flights. this is an example of what type of segmentation?
This is a type of usage rate segmentation as airline offer flyer programs awarding points to their customers on the number of miles they've flown with the airlines.
Usage rate segmentation is a measurement of the number of customers who are liking the company's product as well as the population disliking it. This is done by putting out different offers and features for their customers/users in order to get them involved with their goods and services. Four types of consumers can be categorized in usage rate segmentation: new users (engaging such users can increase their potential and revenue), power users ( committed to the products), advocates (using, praising, and recommending to others), and inactive users (disengaged and not interested one).
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an accelerated depreciation method yields larger depreciation expense in the early years of an asset's life and less depreciation expense in later years. group startstrue or false
The correct answer is True. This is because accelerated depreciation is a depreciation method that allows you to recognize a higher depreciation expense in early years and less depreciation expense in later years.
We use accelerated depreciation because it is one of the largest corporate subsidies in tax law. This allows taxpayers to take more deductions in the early stages of investing, thus paying less tax. Therefore, accelerated depreciation subsidizes business investment. Accelerated depreciation methods are not technically required, but tend to adjust the allowable depreciation rate of an asset to its actual use. This adjustment usually happens because assets are most used when they are new, functional, and most efficient.
Accelerated depreciation is the faster depreciation of a fixed asset at the beginning of its useful life. This type of depreciation reduces the amount of taxable income early in the asset's useful life and allows tax liability to be deferred to a later period.
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On average, how many people attend the Macy’s Thanksgiving Day Parade each year?
Answer:
It's unclear how many people will line the streets this year to watch the parade, which typically draws 2 million to 3 million spectators along the route.
Explanation:
The ___ multiplier is used to calculate a change in real gdp whenever expenditures such as consumption, gross investment, government purchases, or net exports change.
The expenditures multiplier is used to calculate a change in real GDP whenever expenditures such as consumption, gross investment, government purchases, or net exports change.
What is expenditures multiplier ?
The expenditure multiplier (spending multiplier) is a ratio that contrasts the amount of an autonomous change in aggregate spending with the overall change in a country's GDP caused by that change. It calculates the effect of every dollar spent during an initial increase in expenditure on the overall real GDP of a country.
It is estimated as the difference between the change in government spending and the change in real gross domestic product (GDP). divided by the change in government expenditure, the change in equilibrium expenditure and real GDP as a result of equal changes in government spending and lump sum taxes.
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Sport management and marketing agencies perform functions for industry stakeholder groups defined as.
Sport management and marketing agencies perform functions for industry stakeholder groups defined as talent, properties, corporate brands, media companies.
Management is the administration of an corporation, whether or not it's far a business, a non-earnings agency, or a government frame. it's far the art and science of dealing with sources of the enterprise.
The control definition is a single or institution of folks that challenges and oversees a person or collective group of humans in efforts to accomplish favored dreams and targets. moreover, the definition of control consists of the capacity to plot, arrange, reveal and direct individuals.
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metallica bearings, inc., is a young start-up company. no dividends will be paid on the stock over the next 7 years because the firm needs to plow back its earnings to fuel growth. the company will then pay a dividend of $13.00 per share 8 years from today and will increase the dividend by 6 percent per year thereafter. the required return on the stock is 14 percent. what is the price of the stock 7 years from today? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) what is the current share price? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
The current stock price is $65 with the required rate of return as 14%, dividend as $13.00 per share for a period of 8 years.
What is dividend growth model?Investors can use the dividend growth model, a mathematical technique, to calculate a realistic fair value for a company's stock based on its present payout and anticipated dividend growth in the future.
The dividend growth model's fundamental formula is as follows:
Price = Current annual dividend ÷ (Desired rate of return-Expected rate of dividend growth)
This method can be a useful tool for calculating a stock's fair price depending on several possible outcomes.
To solve the question :
Given,
In eight years, the corporation will pay a dividend of $13.00 per share, and each year following that, it will grow by 6%. If this stock requires a 14 percent return.
Therefore, the value of next dividend is $13.00, and it will increase with the rate of 6% i.e growth rate = 6% = 0.06
The required rate is 14% = 0.14
As we will use the dividend in Year 8, we will be finding the stock price in Year 7.
Now calculate the stock price for next 7 years (P7) :
P7 = Next dividend/(required rate-growth rate)
P7 = $13.00/(0.14 - 0.06)
P7 = $13.00/0.08
P7 = $162.50
Now calculate the current stock price as shown:
Current stock price = P7/ (1 + required rate of return)^{7}
= $162.50/ (1 + 0.14)^{7}
= $162.50/ (1.14)^{7}
= $162.50/ 2.50
= $65
Therefore, the current stock price is $65
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Which of the following refers to a concept that explains how products go through four distinct stages from birth to death: introduction, growth, maturity, and decline?
A. Product line
B. Product management
C. Product quality
D. Product mix
E. Product life cycle
The phrase "product life cycle" refers to a theory that describes how products go through four distinct stages from introduction to death: growth, maturity, and decline.
The Product Life Cycle (PLC) describes the phases that a product goes through as it enters, establishes itself, and exits the market. To put it products another way, the product life cycle outlines the phases that a product is likely to go through. For managers, it is a useful tool to aid in the analysis and creation of strategies for their products as they enter and leave each stage.
Sales of a product usually start out low and increase gradually. Since the products is still new and untested, the company's profit is currently product life cycle minimal, if any. Customers might be reluctant or unlikely to test the product during the introduction stage, so significant marketing efforts are needed. Because the production capacity is not maximized, there are no advantages from economies of scale.
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b. how much will gdp change after a $400 billion decrease in government purchases, if the multiplier is 1.25?
The GDP change after a $400 billion decrease in government purchases, if the multiplier is 1.25 will be -398.75 billion.
According to the Bureau of Economic Analysis' "advance" estimate, real gross domestic product (GDP) expanded at an annual rate of 2.6 percent in the third quarter of 2022 (table 1). The real GDP fell by 0.6% in the second quarter.
A rising GDP indicates that the economy is expanding, which increases the resources accessible to citizens in the form of goods, services, wages, and profits.
The demand for money will rise as the GDP rises because more people will need money to conduct the transactions required to acquire the new GDP. In other words, the effect of transaction demand causes a rise in the demand for real money.
Change in GDP = 1.25*(-$400billion) = -398.75 billionHence, gdp change will be -398.75 billion.
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Which of the following characteristics is not indicative of an enterprise qualifying as a primary beneficiary with a controlling financial interest in a variable interest entity? a. the power to direct the most significant economic performance activities b. the power through voting or similar rights to direct activities, which significantly impact economic performance c. the obligation to absorb potentially significant losses of the entity d. no ability to make decisions about the entity's activities e. the right to receive potentially significant benefits of the entity.
No ability to make decisions about the entity's activities. Option D is correct .
What is entity's activities?
An entity combines actions that are managed by a single entity. You can't link a form to an entity until it already exists. The entirety of a firm or partnership is covered by an entity. An activity is a component of the partnership or business. To put it another way, a single entity can encompass a variety of actions.Is entity and activity the same?
The entire Partnership or firm is a single entity. An activity is a component of the partnership or business. To put it another way, a single entity can encompass a variety of activities.Learn more about entity's activities
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What is the main purpose of the FDIC?
The FDIC insures deposits; examines and supervises financial institutions for safety, soundness, and consumer protection; makes large and complex financial institutions resolvable; and manages receiverships.
What impact did the FDIC have?In the event that financial institutions collapse, the Federal Deposit Insurance Corporation (FDIC) is an independent organization that offers deposit insurance for bank accounts and other assets in the United States.The FDIC was established to increase customer trust in the soundness and stability of the country's financial system.The Banking Act of 1933, also known as the Glass-Steagall Act, established the Federal Deposit Insurance Corporation (FDIC), an independent U.S. government corporation, with the mandate to regulate certain banking practices and to insure bank deposits in eligible banks against loss in the event of a bank failure.To learn more about Federal Deposit Insurance Corporation refer,
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suppose the fed conducts an open market purchase of bonds this monetary policy action will tend to cause
This monetary policy action will tend to cause the price of bonds to decrease and the interest rate will increase.
What is monetary policy?The goal of monetary policy is to ensure price stability and public confidence in the strength and stability of the country's currency. It is the strategy used by the monetary authority of a country to control either the interest rate payable for very short-term borrowing (banks borrowing from one another to meet their short-term needs) or the money supply. By modifying interest rates or removing excess reserves, monetary policy can increase the money supply by "printing" more money or reduce it by adjusting reserve requirements. Contrast this with fiscal policy, which uses taxation, government spending, and government borrowing as tools for a government to control economic cycle phenomena like recessions.
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