Answer:
A.) Firm B must have a higher ROE than first A.
Explanation:
Debt ratio is defined as percentage of a company's assets that is made up of debt and so it is calculated as a ratio of debt to assets of a company.
Interest expense is the amount that is paid to service a loan.
This implies that company B has higher loan portfolio than Company A.
Considering the accounting formula
Equity= Asset- Debt
So an increase in debt will result in a decrease in equity.
Return on equity= Net income/Equity
It follows that as debt increases and equity reduces, the ROE will increase since a shrink in the ROE denominator (Equity) will lead to an increase in the ratio.
Answer:
must slope downward towards the right.
Explanation:
The indifference curve is the curve representing the combination of two products which derives similar satisfaction and the utility which makes the customer distinct.
The properties of the indifference curves are as follows:
1. It slopes downwards towards the right
2. It never be intersected to each other
3. It is convex to the origin
Answer:
The answer is: A) the employees did not have a reasonable expectation of privacy.
Explanation:
Reasonable expectation of privacy is included in the Fourth Amendment, and it refers to certain aspects of a person's life that should be private.
People can usually expect privacy at their homes, but once they are outside things can change a little. The law usually protects people from being exposed to humiliating situations in public or the exposure of private details of their life.
In a workplace, things can get even more trickier, since your employer has the right to "invade" your privacy because he has a legitimate interest to know (e.g. security cameras). In this case the employer notified the employees that their communications would be monitored, so the employees cannot argue that they thought they had a reasonable expectation of privacy.
Answer:
The correct answer is letter "A": an increase in the long-run equilibrium level of output.
Explanation:
Aggregate Demand is a macroeconomic term describing the total demand in an economy for all goods and services at any given price level in a given period. That scenario implies aggregate demand is the demand for the Gross Domestic Product (<em>GDP</em>) of a country.
In front of a recession, the government should promote the increase the aggregate demand by <em>lowering rates</em> so more loans will be available and reachable. With more loans, more investments come and in the long term, the output is likely to hit its equilibrium point.
Answer:
The government budget deficit will cause the interest rate to rise, reducing both saving and investment.
Another effect will be the crowding-out of the loanable funds market to private investment. This is because a government in deficit will need to issue more debt in the market, taking up many funds that could have been otherwise invested in private companies.
