Answer:
C
Explanation:
Money neutrality is a theory which submits that money supply only affect nominal variable and not real variables.
Nominal variables include price, wages and exchange rate
real variables include employment and real GDP
Money is only neutral in the long run and not in the short run because of money illusion. Money illusion causes economic agents to respond to money supply changes.
Money is neutral only in the long run
Answer:
Wayman Corporation
Multiple-step income statement
Sales $425,000
Less: Cost of goods sold <u>$135,000</u>
Gross Profit $290,000
Operating Expenses
Salary Expenses $45,000
Utility Expenses $55,000
Advertising Expenses <u>$35,000</u>
Total Operating Expenses <u>($135,000)</u>
Net Operating Income $155,000
Other Income and Expenses
Interest expense <u>$25,000</u>
Net Income before Tax $130,000
Income tax expense <u>$55,000
</u>
Net Income <u>$75,000</u>
Answer: - $3
Explanation:
We should note that the holder of a put will gain when the share price is below the exercise price.
Since the gain with regards to the question is ($30 - $29) = $1 and the premium paid is 4, then the maximum profit per unit will be:
= Gain - Premium paid
= $1 - $4
= -$3.
Answer:
(A) Decrease
(B) Increase
(C) Frictional
Explanation:
An decrease in the price of cotton will cause all the cotton producing firms to put Strategies in place that will help them to cut the costs of operations which will include the REDUCTION OF THE MANPOWER OR WORKFORCE.
When the price of raw materials or inputs used in the production processes of a given product reduces, IT WILL ENABLE THE COMPANY TO WANT TO INCREASE ITS PRODUCTION CAPACITY WHICH WILL ALSO INVOLVED AN INCREASE IN MANPOWER OR WORKFORCE.
Frictional Unemployment is a type of Unemployment caused by seasonal changes such as reduced demand, reduced price of products etc or people changing jobs due to certain factors.
