1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Delvig [45]
1 year ago
14

Which of the following would not be an expected response from a decrease in the price level and so help to explain the slope of

the aggregate-demand (AD) curve?
A.With prices down and wages fixed by contract, Millio’s Frozen Pizzas decides to lay off workers.
B.When interest rates fall, Sleepwell Hotels decides to build some new hotels.
C.The exchange rate falls, so French restaurants in Paris buy more Iowa pork.
D.Janet feels wealthier because of the price-level decrease and so she decides to remodel her bathroom.
Business
1 answer:
OLEGan [10]1 year ago
5 0

With prices down and wages fixed by contract, Milli's Frozen Pizzas decides to lay off workers would not be an expected response from a decrease in the price level.

<h3>What happens to the budget line if prices don't change but consumer income does?</h3>

Consumers will switch to the consumption of lower combinations of goods or services if their income declines. Since the cost of the commodities has not changed, the budget line will drop downward but the slope stays the same.

When one or both product prices fluctuate while nominal revenue (budget) stays the same, the budget line will alter. a change in the nominal income level with no change in the relative prices of the two goods.

To know more about budget line, refer:

brainly.com/question/14637545

#SPJ4

You might be interested in
The idea that investors today compare the returns on bonds with differing times to maturity to see which is expected to give the
Zielflug [23.3K]

Answer:

expectations theory

Explanation:

Expectations theory is defined as the prediction of what short-term interest rates will amount to in future based on the current long-term interest rates on an investment.

The theory suggests or states that "an investor will earn the same amount of interest by investing in two consecutive one-year bond investments that in one two-year bond investment".

Simply put, the theory say that one can invest twice in a one year bond and still make the same interest rate as investing once in a two-year bond.

This theory helps investors to make profits faster and even higher through multiple investments on bonds.

Cheers.

8 0
2 years ago
If the midlands pencil corporation has issued several different debt securities, an investor would expect the lowest income stre
Dafna1 [17]

If the midlands pencil corporation has issued several different debt securities, an investor would expect the lowest income stream from <u>convertible debentures.</u>

Convertible bonds have many positive attributes for investors, but the main drawback is that investors accept lower interest rates in exchange for these benefits.

Convertible debentures are fixed rate debentures that pay interest but can be converted into a specified number of ordinary shares or shares. Conversion of a bond into equity may occur at certain times during the life of the bond and is generally at the discretion of the bondholder.

Due to this logic, a convertible bond allows the issuer to indirectly sell its common stock at a price higher than its current price. From a buyer's perspective, convertible bonds are attractive because they offer the opportunity to capture the potentially high yields associated with equities, but also the security of bonds.

Learn more about bonds here brainly.com/question/9817093

#SPJ4

3 0
1 year ago
Some markets have many buyers and sellers but fall into the category of monopolistic competition rather than perfect competition
tiny-mole [99]
These firms do not have perfect market information to know all the price charges by different sellers,the quality the market demand and supply is etc.
7 0
3 years ago
Suppose that Rearden Metal currently has no debt and has an equity cost of capital of 12%. Rearden is considering borrowing fund
Alexxandr [17]

Answer:

Option (C) is correct.

Explanation:

We have to use MM proposition that cost of equity will change itself in such a manner so that it can take care of its debt.

Cost of equity:

= WACC of all equity firm + (WACC of all equity - Cost of debt ) × (Debt -to-equity ratio)

At the beginning, when there was no debt,

WACC = cost of equity = 12 %

Levered cost of equity:

= 12% + ( 12% - 6%) × 0.5

= 15%

Therefore, Rearden's levered cost of equity would be closest to 15%.

4 0
3 years ago
Select three situations when an agency can perform a warrantless search.
Eddi Din [679]
C or d im npt sure about d if its a emergency you would at least have to have permission from the owner of the property
8 0
3 years ago
Other questions:
  • Recommend two aspects you would include when preaparing a flyer
    15·1 answer
  • In 2008, at the depth of the great recession, the fed moved toward a zirp policy when it aimed to keep the federal funds rate be
    5·1 answer
  • Cedar Designs​ Company, a custom cabinet manufacturing​ company, is setting standard costs for one of its products. The main mat
    6·1 answer
  • Do you think competition between co-workers is healthy destructive unavoidable
    5·1 answer
  • Using a General Journal Math Quiz
    7·1 answer
  • __________ is an example of a public source of information consulted during an external search as part of the purchase decision
    6·2 answers
  • Assume you can currently exchange one U.S. dollar for one hundred Japanese yen. Also assume the inflation rate will be 2.5 perce
    14·1 answer
  • A process in which a third party reviews a case made by two sides of a negotiation is called ________.
    15·2 answers
  • Assuming the preferred stock is cumulative, compute the amount of dividends to preferred stockholders and to common stockholders
    9·1 answer
  • what was the role of Winnie madikizela-mandela in the struggle against apartheid in the 1950s to 1970s​
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!