I believe the answer is: D) excessive credit expansion
Excessive credit expansion allow a person to obtain high value assets even if they do not have any money to pay for it. This create an economic bubble that eventually popped overtime, creating a massive economic depression that almost drive the nation into bankruptcy.
Answer: B
Explanation:
Budgetary slack is a cushion created in a budget by management to increase the chances of actual performance beating the budget. Budgetary slack can take one of two forms: an underestimate of the amount of income or revenue that will come in over a given amount of time, or an overestimate of the expenses that are to be paid out over the same time period. Budgetary slack is generally frowned upon because the perception is that managers care more about making their numbers to keep their seats and gaming the executive compensation system rather than pushing company performance to its potential. Managers putting a budget together could low-ball revenue projections, pump up estimated expense items, or both to produce numbers that will not be hard to beat for the year. It also provides flexibility for operating under unknown circumstances, such as an extra margin for discretionary expenses in case budget assumptions on inflation are incorrect, or adverse circumstances arise.
Answer: $101,250
Explanation:
Given that,
Expects to purchase material in July = $90,000
Expects to purchase material in August = $105,000
August's cash disbursements for materials purchases:
= 75% of August purchases + 1/4 of July purchases
= 0.75 × $105,000 + 0.25 × $90,000
= $78,750 + $22,500
= $101,250
Answer:
b. rising interest rates.
Explanation:
A bond can be defined as a debt or fixed investment security, in which a bondholder (creditor or investor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time.
Generally, the bond issuer is expected to return the principal at maturity with an agreed upon interest to the bondholder, which is payable at fixed intervals.
The par value of a bond is its face value and it comprises of its total dollar amount as well as its maturity value. Also, the par value of a bond gives the basis on which periodic interest is paid. Thus, a bond is issued at par value when the market rate of interest is the same as the contract rate of interest. This simply means that, a bond would be issued at par (face) value when the bond's stated rated is significantly equal to the effective or market interest rate on the specific date it was issued.
In Economics, bonds could either be issued at discount or premium.
Generally, if a business firm has invested in corporate bonds, it may engage in a financial futures contract in order to protect itself from rising interest rates.
Answer:
producer surplus is greater than consumer surplus.
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the product.
Consumer surplus = willingness to pay - price of the product
$120 - $119 = $1
Producer surplus is the difference between the price of a product and the least price the seller is willing to sell his product.
Producer surplus = price - least price the seller is willing to sell his product.
$119 - $110 = $9
From the calculation, producer surplus is greater than consumer surplus.
I hope my answer helps you
