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3 years ago

Manufacturers begin building a new plant in arizona. which determinant of aggregate demand causes the change?

1 answer:

8 0

<span>Investment spending will lead to the change. Investment, in this case, is any sort of spending in capital that will further a business's goals, such as in a new building or new machines as part of that building. The increased investment will lead to an increase in capacity, which can increase both aggregate supply and demand.</span>

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____________ risk refers to the danger of changes in buying power during times of rising or falling prices.

natali 33 [55]

The risk refers to the danger of changes in buying power during times of rising or falling prices is known as inflation.

Risk refers to the uncertainty or probability of an accidental event that will affect the decision-making of an individual or organization. In business the higher the risk, the higher the profit is achieved.

Inflation is defined as the ratio at which prices rise over time. Inflation is usually defined as a wide measure of price increases or increases in the cost of living in a place affecting its citizens.

Inflation diminishes the purchasing power of individuals which leads to high risk for investors who paid a fixed rate of interest on the investment. Most concerned about inflation-reducing returns are those individuals who invested in cash equivalents.

Learn more about risk, here:

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3 0

2 years ago

Bluestone Company had three intangible assets at the end of the current year: a. A patent purchased this year from Miller Co. on

german

Answer:

Acquisition cost

a. Patent: $6,000

b. Trademark: $4,000

c. Computer licensing rights: $42,000

2. Amortization for current year

a. Patent: $500

Annual Amortization charge = Cost / Estimated life = $6,000 / 12 = $500

b. Trademark: $0. Since it has an indefinite life.

c. Computer licensing rights: $7,000

Annual Amortization charge = Cost / Useful life = $42,000 / 6 = $7,000

3. Balance Sheet (Partial)

Assets

Intangible Assets=$44,500

($6,000 + $4,000 + $42,000 - $500 - $7,000)

Income Statement (Partial)

Under Continuing operations

Amortization expense=$7,500

6 0

3 years ago

A depositor places $10,000 in cash in a commercial bank, where the required reserve ratio is 10 percent. The bank sends the $10,

garik1379 [7]

Answer:

C) $10,000, $1,000, and $9,000, respectively.

actual reserves increase by $10,000
required reserves increase by $1,000
excess reserves increase by $9,000

Explanation:

the money deposited by the client = $10,000

bank's reserve ratio is 10% = $10,000 x 10% = $1,000

since the bank kept the whole $10,000 as reserves, then:

actual reserves increase by $10,000
required reserves increase by $1,000
excess reserves increase by $9,000

The bank is only required to keep $1,000 in reserves, this means it can borrow the remaining $9,000 whenever they want.

7 0

3 years ago

Martin is offered an investment where for $6000 today, he will receive $6180 in one year. He decides to borrow $6000 from the ba

Ne4ueva [31]

Answer:

The maximum interest rate which the bank needs to offer the loan is 3%

Explanation:

The maximum interest rate which the bank needs to offer the loan is computed as:

Maximum interest rate = Amount received in one year - Amount invested today / Amount invested today

where

Amount received in one year is $6,180

Amount invested today is $6,000

Putting the values above:

Maximum interest rate = ($6,180 - $6,000) / $6,000

= $180 / $6,000

= 3%

So, the maximum interest rate is 3% which is needed to offer by banks

3 0

3 years ago

Fish Fillet Incorporated obtains fish and then processes them into frozen fillets and then prepares the frozen fish fillets for

sveticcg [70]

Answer:

Total spoiled units = 7000

Normal spoilage total = 3500

Abnormal spoilage total = 3500

Total cost per equivalent unit = $3.80

Cost of goods manufactured = $224,000

Ending WIP = $201,165

Explanation:

Kindly check attached pictures

8 0

3 years ago