The answer is credit limit
Answer:
The marginal propensity to save (MPS) is the portion of each extra dollar of a household's income that's saved. MPC is the portion of each extra dollar of a household's income that is consumed or spent. Consumer behavior concerning saving or spending has a very significant impact on the economy as a whole.
Multiplier Effect
for every dollar the government spends, it will create a greater than one dollar change in GDP
Spending Multiplier
1 / 1-MPC or 1 / MPS; increase in spending .: + multiplier; decrease in spending .: - multiplier
Deficit spending is the amount by which spending exceeds revenue over a particular period of time, also called simply deficit.
Crowding out in businesses an economic concept that describes a situation where personal consumption of goods and services and investments by business are reduced because of increases in government spending and deficit financing sucking up available financial resources and raising interest rates.
Explanation: Marginal Propensity to Consume
the fraction of any change in disposable income that is consumed; MPC = change in C / change in DI
Marginal Propensity to Save
the fraction of any change in disposable income that is saved; MPS = change is S / change in DI
<span>The answer for the above question is managerial. When Herbert took a new position at Galbrook Manufacturing Company, the firm was near insolvency. One of Herbert's first acts was to establish specific goals for sales growth and a strategy for achieving them. He also changed the organizational structure and developed an elaborate control system for keeping the company on track. Herbert is functioning in a(n) managerial position at Galbrook Manufacturing.</span>
Answer:
Option (B) is correct.
Explanation:
Dividend per share:
= (65% of Par value of the stock)
= (65% × 0.01)
= $0.0065
Hence, the total dividend:
= (Dividend per share × outstanding shares of common stock)
= (0.0065 × 4.96 million)
= $32,240
Hence, the dividend would cause a decrease in retained earnings.
Therefore, the correct option is B.
Answer:
liquidity premium theory
Explanation:
The liquidity premium theory states that those that invest in bonds do prefer high liquid as well as securities that are short-dated so that it can be sold fast compare to long-dated ones. It states that investors do get compensation for higher default risk when there is change in interest rate.
It should be noted that The liquidity premium theory of the term structure states the following: the interest rate on a long-term bond will equal an average of short-term interest rates expected to occur over the life of the long-term bond plus a term premium that responds to supply and demand conditions for that bond.
