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11Alexandr11 [23.1K]
3 years ago
14

Financial Crisis Suppose that banks are less able to raise funds and so lend less. Consequently, because people and households a

re less able to borrow, they spend less at any given price level than they would otherwise. The crisis is persistent so lending should remain depressed for some time. Refer to Financial Crisis. What happens to the price level and real GDP in the short run? a. both the price level and real GDP fall b. the price level falls and real GDP rises c. both the price level and real GDP rise d. the price level rises and real GDP falls
Business
1 answer:
leva [86]3 years ago
7 0

Answer:

A) both the price level and real GDP fall

Explanation:

During recessions both the inflation rate (change in general price level) and the real GDP will either stop growing or reduce their growth rate.

Recessions are usually the result of financial crisis, especially the last great recession of 2008 through 2010. Once private consumption starts to fall, the whole economy will slow down dramatically or also fall. Private consumption represents almost 70% of the GDP, so it is by far the largest and most important economic factor.

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BK Trucking has total equity of $25,380 and 1,500 shares outstanding.Its stock is currently selling at $38 per share. What is th
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Answer:

2.25 times

Explanation:

The computation of the market-to-book ratio is shown below:

Market to book ratio = (Market price per share) ÷ (book value per share)

where,

Market price per share = $38 per share

And, the book value per share

= Total equity ÷ outstanding shares

= $25,380 ÷ 1,500 shares

= $16.92

So, the market to book ratio would be

= $38÷ $16.92

= 2.25 times

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3 years ago
You and a friend want to open new pet-grooming and pet-services shop. Once established, you intend to open a second store in a l
shusha [124]

Answer:

Personal Assets

Explanation:

You and a friend want to open new pet-grooming and pet-services shop. Once established, you intend to open a second store in a larger town 20 miles away. If store number two is a success, you plan to start franchising your company. <u>Personal Assets</u> will probably be the most important source of funds for your new business.

<u>When starting a business as a sole proprietorship or partnership, the most likely source of start up fund is the converting your personal assets. </u>

<u>Personal assets are items of value that belong to an individual. They might be tangible personal assets like houses and cars, and also include such financial assets as savings accounts, checking accounts, and retirement accounts. </u>

<u>So in the scenario, the business is likely to start by a combination of savings of the two friends</u>

<u />

5 0
3 years ago
Imagine you have just learned a new and more effective way to complete a task at work, You have to teach it to a new co worker w
ad-work [718]

Answer:

By showing them that this new way is more effective. Actions speak louder than words.

8 0
3 years ago
Which tool of monetary policy is most likely being described by each of the following statements?
soldi70 [24.7K]

Answer:

Even if they aren’t interested in buying, selling, or borrowing from the Fed, changes in this tool may inconvenience bank managers.

Explanation:

Monetary policies are tools government uses to regulate the financial sectors as such any changes made will either favor the bank stakeholders/managers or distort the bank managers plans there by causing inconvenient  

5 0
3 years ago
You are going to receive $80 at the end of each year for the next 12 years. If you invest each of those amounts at 12%, then wha
Nat2105 [25]

Answer:

FV= $1,930.65

Explanation:

Giving the following information:

Cash flow= $80 a year

Number of periods= 12 years

Interest rate= 12% compounded annually

<u>To calculate the future value, we need to use the following formula:</u>

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {80[(1.12^12) - 1]} / 0.12

FV= $1,930.65

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3 years ago
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