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3 years ago

The difficulty of converting savings and investments to cash is referred to as ____________ risk.

1 answer:

3 0

Liquidity. Obviously case would be the most liquid as it can be used immediately without having to convert it. Other things, such as Certificates of Deposit (CDs) are not as liquid because one has to wait until their maturity date to convert them to cash without a penalty.

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Blue ace autos inc. and ferdova autos inc. are two competing automobile companies. while blue ace autos' cost of goods sold/reve

Galina-37 [17]

Given:
Blue Ace Autos Inc: cost of goods sold / revenue = 63.4%
Ferdova Autos Inc.: cost of goods sold / revenue = 54.2%

The percentage rate represents the part of the revenue that the cost of goods sold is a part of. This means that the revenue is 100%. The difference of the revenue and cost of good sold is the profit. The higher the percentage of the profit, the better.

Blue Ace Autos Inc: 100% - 63.4% = 36.6%
Ferdova Autos Inc: 100% - 54.2% = 45.8%

Ferdova Autos Inc. earn a higher profit (45.8% of revenue) than Blue Ace Autos Inc (36.6% of revenue).

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3 years ago

Because a decrease in real autonomous spending results in a ________ in the price level, the ultimate effect on real gdp is ____

KIM [24]

Because a decrease in real autonomous spending results in a fall in the price level, the ultimate effect on real GDP is smaller that predicted by the multiplier.

Another significant discovery is made by Keynesian economics. You've learnt that Keynesians think fluctuations in total spending are what ultimately determine the level of economic activity in the short run (or aggregate demand).

Assume that full employment prevails in an economy because the macro equilibrium occurs at the potential GDP.

Keynes noted that even while the economy starts at potential GDP, it is improbable that it will stay there because aggregate demand has a propensity to fluctuate.

In 2007, the collapse of the housing market caused a decline in U.S. investment spending. The Great Recession subsequently hit the American economy as a result.

To learn more about Keynesian here

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7 0

2 years ago

Which of the following is not a benefit of contributing to a retirement account

Naily [24]

Answer:

Explanation:

8 0

3 years ago

Read 2 more answers

Firm A has earnings-per-share of $3.00. Firm B has earnings-per-share of $2 and a price-per-share of $30. Using the Price/Earnin

stealth61 [152]

Answer:

Company A's price per share is $45

Explanation:

The P/E ratio of one company can be used by investors and analysts to determine the value of another companie's stock in the industry. This is called apples-to-apples comparism.

The P/E ratio is used to value a company by comparing its share price to earnings per share.

P/E ratio= market value of shares/ earnings per share

For company B

P/E ratio= 30/2= $15

Using company B's P/E ratio as a benchmark for company A

15= Price per share /3

Price per share = 15*3= $45

8 0

3 years ago

Listed below are several transactions that took place during the first two years of operations for the law firm of Pete, Pete, a

umka2103 [35]

Answer:

Cash Flow

year 1: cash generated in operating activities: 35,000

year 2: cash used in operating activities (28,000)

Receivables:

year 1: 23,000

year 2: 40,000

Net Income

year 1: 32,000

year 2: 59,000

Explanation:

Cash flow:

operating activities: year 1

collected from client 170,000

salaries paid to employees (100,000)

utilities (35,000)

insurance policy (63,000)

cash used in operating activities (28,000)

operating activities: year 2

collected from client 200,000

salaries paid to employees (110,000)

utilities (55,000)

cash generated in operating activities: 35,000

receivable:

billed - collected

year 1 receivables 193,000 - 170,000 = 23,000

year 2 receivables 240,000 - 200,000 = 40,000

Income Statement year 1

fees revenues 193,000

salaries (100,000)

utilities (40,000) (incurred cost)

insurance (21,000) (63,000 for three years, the value of 1 year is 21,000)

net income 32,000

Income Statement year 2

fees revenues 240,000

salaries (110,000)

utilities (50,000) (incurred cost)

insurance (21,000) (63,000 for three years, the value of 1 year is 21,000)

net income 59,000

5 0

3 years ago