Answer:
D) hesitant; because it may cause a slowdown in the economy
Explanation:
The FED usually increases interest rates to halt rapidly increasing inflation, and it could be useful to calm down potential asset bubbles. The problem with raising interest rates is that it immediately cools down the economy and slow down economic growth. It might even stop economic growth and cause a recession.
Since higher interest rates increase the cost of borrowing for everyone in the economy (individuals, businesses), consumption decreases and investment increases. The problem with this is that private consumption represents nearly 70% of the GDP and the money multiplier is responsible for a lot of this.
Some people might reject the gospel message because they have a different opinion on the matter, they have a different religion, or they simply don't understand. People tend to reject things they don't understand.
When an economist says that "Kevin's income elasticity of red wine is 6" he means that if Kevin's income increases by 10%, the quantity of red wine demanded by Kevin rises by 60%. So, red wine is income elastic. Since the income elasticity is greater than 1, red wine is a luxury good for Kevin.
Income elasticity measures the change in the quantity of goods demanded relative to a change in income.
If an increase in income results in a decrease in the quantity of goods demanded, then that good is an inferior or cheap good. The income elasticity of a cheap good is negative.
If the demand for a good rises with an increase in income, then that good is a normal good. The income elasticity of normal goods is greater than zero.
If an increase in income results in a greater increase in the quantity of goods demanded, then that good is a luxury good. The income elasticity of a luxury good is greater than 1.
Answer:
Explanation:
This is a question about allocation based on how much the street frontage will be valued in future. That value will then be allocated to the joint cost to see how much to apportion to Street Frontage now.
The total value of the Street Frontage after development is,
= 125 lots * $70,000
= $8,750,000
The total value of Golf lots are,
= 100 lots * $100,000
= $10,000,000
Adding them up,
= 10,000,000 + 8,750,000
= $18,750,000
This is the total amount of the company could make and therefore the lot's value.
Company incurred the following costs.
= 1,850,000 * 1,450,000
= $3,300,000
The amount of joint costs to be allocated to Street Frontage will be,
= 8,750,000/ 18,750,000 * 3,300,000
= $1,540,000
The amount to allocate to Street Frontage based on the total value of the lot is $1,540,000.
Answer:
The correct answer is letter "D": Market development.
Explanation:
Market development is a strategy firms use to introduce a product into another existing market attracting new consumers to the same business. The strategy implies selling existing products in new geographical areas but it can also refer to selling the same goods or services to the same customers in new ways.
