The president is able to set price controls. When this is done however it sets an artificial ceiling on the price of goods. When the price set is too high it causes too many of the product to be produced because people can't afford to buy it. When the price being set it too low it causes shortages. in the market place. One example of this is when back in the 1970's the price of gasoline was set at too low of a price. Long lines formed a gas stations and only those who were patient enough to wait in line actually got the gas the needed.
Answer:
Reduction in consumer confidence will decrease consumption demand, which will decrease output. IS curve... view the full answer
Explanation:
Reduction in consumer confidence will decrease consumption demand, which will decrease output.
Answer:
a.
Explanation:
According to my research on purchasing decisions and factors, I can say that based on the information provided within the question this is an example of how experience can narrow a customer's perceptions of the value of a product's differentiated features. Since after having hands on experience with the compact, fuel-efficient Japanese import, Anthony began to realize that the Luxury SUV's "value" wasn't really there or "worth it" in his opinion.
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Answer:
A historic credit score of 300
Explanation:
A credit score is a numeric record that expresses the reliability of a borrower to repay loans. The credit score or credit rating is determined by, among other things, credit history, income level, and the individual's income to debt ratio.
Credit scores range between 300 and 850. 300 is the lowest and the poorest score. A score of 300 indicates that the borrower has a bad history of debt repayment. They are always late on repayments, miss on installments, or have defaulted on loans. Lenders consider such persons as high-risk borrowers and are likely to deny them credit facilities.
Answer:
Option (D) is correct.
Explanation:
We have to use MM proposition that cost of equity will change itself in such a manner so that it can take care of its debt.
Cost of equity:
= WACC of all equity firm + (WACC of all equity - Cost of debt ) × (Debt -to-equity ratio)
At the beginning, when there was no debt,
WACC = cost of equity = 10%
Levered cost of equity:
= 10% + ( 10% - 6%) × 0.2
= 10.8%
Therefore, Taggart's levered cost of equity would be closest to 11%.
