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2 years ago

Decreasing taxes can stimulate the economy by

1 answer:

5 0

Decreasing taxes can stimulate the economy by putting more money in the circulation or by boosting the spending .The tax cuts stimulate the economic growth only in the short-term.

Explanation:

Due to an decrease in tax the after tax income of an individual increases which is used by individuals to buy more product and services.Thus reduced tax rates leads to an increase in saving and investment, which leads to an increase in the productive capacity of the economy as a whole

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the link between home currency value of a firm's assets and liabilities and exchange rate fluctuations is

faltersainse [42]

Answer:

Asset exposure

Explanation:

Asset exposure shows the difference that lies between the exposed assets and the exposed liabilities. Here the long in currency is when the exposed assets are more than its liabilities and on the other hand the short in currency is when the exposed assets are less than its liabilities

In addition to this, the linking that need to be done between the firm asset and liabilities of home currency and the fluctuation in exchange rate would be also known as asset exposure

7 0

2 years ago

SCENARIO 3.1: Rented DVDs and movies shown in theaters are substitutes. Rented DVDs and plasma TVs are complements. Plasma TVs a

EleoNora [17]

Answer:

What would happen is Price of TVs goes up and price of rental DVDs goes down. Subsequently, price of movies theaters rises.

Explanation:

As there are less import of Plasma TV from Japan, the supply will be lower, while demand remains unchanged. So, price of Plasma TV will go up following is the demand for plasma TV will go down

As Plasma TV and rental DVDs are complementary goods, downward in demand for plasma TV means less demand for rental DVDs while supplies for rental DVD remains the same. Thus, price of rental DVD will go down.

As rental DVD and movies theaters are substitute goods, the demand in rental DVD going down will cause the increase in the demand in movie theaters while supplies for movie theaters stay the same. So, movie theater ticket will go up subsequently.

4 0

2 years ago

In the context of consumer behavior (CB), researchers derive meaning from talking to people and observing their behavior rather

Mariulka [41]

Answer:

The correct answer is (b)

Explanation:

Interpretive research is based on predicting and analysing consumer behaviour based on the socio-historic context. This is an old technique to use historic data to predict human behaviour which is not feasible to apply in today's world because people, their living styles everything has changed. Now, researchers try to predict a phenomenon and consumer behaviour by talking to them rather analysing in a socio-historic context.

5 0

2 years ago

What type of residential survey, also called a drive-by survey, is designed to show the location of the house and other large st

Dvinal [7]

Answer:

It is called a "House Location" Survey, which is also sometimes called a "drive-by" survey, and its goal is to show the location of the house and other large structures on the property, as well as the orientation of those structures in relation to each other.

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2 years ago

Charisma, Inc., has debt outstanding with a face value of $6 million. The value of the firm if it were entirely financed by equi

Gnesinka [82]

Answer:

$660,000

Explanation:

According to M & M proportion I with taxes, the value of the levered firm is:

V (Firm) = V (Equity) + V (Debt)

= $28,400,000 + 0.25(6,000,000)

= $28,400,000 + $1,500,000

= $29,900,000

Total market value of the firm:

= Market value of the debt + Market value of equity

= $6,000,000 + stock outstanding × Selling price per share

= $6,000,000 + 415,000 × $56 per share

= $29,240,000

With non-marketed claims, such as bankruptcy costs, we would expect the two values to be the same.

The differences are the non-marketed claims:

Expected bankruptcy costs = $29,900,000 - $29,240,000

= $660,000

4 0

2 years ago