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goldenfox [79]
2 years ago
15

Suppose the consumer confidence index increases from 103 to 146. How does this change effect the AD/AS model

Business
1 answer:
Darina [25.2K]2 years ago
8 0

The AS curve shifts to the left.

The Consumer Confidence Index is an economic indicator published by various organizations in several countries. Simply put, rising consumer confidence is an indication of the economic growth that consumers are spending and an increase in consumption.

When the latest index exceeds 100, consumers will be more confident than in 1985. Below 100, consumers are less confident than they were then.

Consumer confidence is an economic indicator. It measures how confident consumers are about the general state of the economy. It also measures how confident people are about income stability. Their self-confidence influences not only their financial decisions but their spending activities.

Learn more about the consumer confidence index here:brainly.com/question/25122933

#SPJ1

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The phrase laissez-faire means which of the following?
Ksivusya [100]
Hey there!

The phrase “laissez-faire” means “Let it be” originally but in the choices you provided In your answers above the closes to it would mostly be ‘to let be’ would be your answer


Answer: B. To let be


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~LoveYourselfFirst:)
6 0
3 years ago
ChocolateCookie Inc is a private firm. You collected information about its competitors and calculated the weighted average of th
kvv77 [185]

Answer:

1.25

Explanation:

The Capital Asset Pricing model will be used

ße = ßa × [Ve + Vd(1 – T)] / Ve

Here

ße = 1.08

Ve = Value of equity $50 million

Vd = Value of debt $10 million

T is tax rate which is 21%.

By putting the values, we have:

ße = 1.08 × [50 + 10(1 – 21%)] / 50

ße = 1.25

The beta equity of Chocolate Cookie is 1.25 which shows higher risk than average risk.

8 0
3 years ago
Fowler is expected to pay a dividend of $1.81 one year from today and $1.96 two years from today. The company has a dividend pay
Mekhanik [1.2K]

Answer:

$77.34

Explanation:

The computation of the current stock price is shown below:

But before that following calculations need to be done

EPS for year 2 = Dividend at year 2 ÷ Payout Ratio

= $1.96 ÷  0.40

= $4.90

Now  the price at year 2 is

Price at year 2 ÷ EPS at year 2 = PE ratio

Price at year 2 ÷ $4.90 = 18.95

Price at year 2 = $92.855

Now finally the current stock price is

= Dividend at year 1  ÷ (1 + rate of interest) + Dividend at year 2 ÷ (1 + rate of interest)^2 + Price at year 2 ÷ (1 + rate of interest)^2

= $1.81 ÷ 1.119 + $1.96 ÷ 1.119^2 + $92.855 ÷ 1.119^2

= $77.34

6 0
2 years ago
The typical risks of a cost leadership strategy include: a. the inability to balance high differentiation and low price. b. exce
vichka [17]

Answer: The correct answer is "b. production and distribution processes becoming obsolete.".

Explanation: The typical risks of a cost leadership strategy include production and distribution processes becoming obsolete because to maintain cost leadership, the production and distribution processes must always be in constant observation to modify if necessary in order to maintain competitiveness and not remain stuck attached to a production and distribution model that as a consequence of innovations in the competition may become obsolete.

8 0
3 years ago
Read 2 more answers
Molly's auto detailers maintains its records on the cash basis. During 2018, molly's collected $72,800 from customers and paid $
igor_vitrenko [27]

Accrued Net Income will be calculated as below:

Sales                                                    $72800

Less Expenses                                     $20400

Cash Income                                         $52400

Less: Depreciation                                 $4900

Add: Accounts Receivable Inc              $4500

Less: Reduction in Prepaid Exp             $1900

Add: Reduction in Acc Liab                    $1700

Accrued Income                                   $51800

Depreciation will be reduced as its an expense and all expenses will be reduced.

Increase in Accounts Recievables indicate there have been sales which have not been paid for yet, thus sales will increase and this needs to be added

Reduction in Prepaid Expenses refer to expenses being paid off earlier but now need to be recognised, thus these need to be added to expenses

Reduction in accrued liabilitites indicate that expenses of previous period have been paid off now thus those need to be reduced from cash expenses.

6 0
3 years ago
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