Answer:
b. the increase in the interest rate creates an income effect that is greater than the substitution effect.
Explanation:
Interest rate can be regarded as amount that is been charged by lender for using an assets, this asset could be cash, goods, and this is usually display as a percentage of the lent principal.
The income effect gives shows how increased purchasing power can impact consumption, substitution effect on other hands, shows how changing relative income as well prices impact consumption. Both economics concepts give expression of changes that occur in the market as well as how this changes impact consumption patterns as regards consumer goods and services.
It should be noted that the increase in the interest rate creates an income effect that is greater than the substitution effect.
Answer: Functional
Explanation: The functional structure of an organisational chart places people with similar skills who perform similar activities in a group under a common manager who answers to an executive a level up in the hierarchy who may oversee multiple departments. Therefore, an organizational chart of a company showing vice presidents with responsibility for key areas such as design, manufacturing, sales, marketing, and after-sales support would reflect a functional structure.
An advantage of the functional structure is that employees are allowed to focus their collective energies on executing their roles as a department but sometimes they might develop tunnel vision (seeing the company solely through the lens of the employee’s job function) and often at times there is a lack of inter-departmental communication.
Answer:
$(4,000)
Explanation:
Calculation to determine At the end of the first accounting period what would be reported for Net Operating Cash Flow on the Statement of Cash
Inventory purchased on account $5000
Less Returned of inventory purchased $1,000
Net Operating Cash Flow $(4,000)
($5,000-$1,000)
Therefore At the end of the first accounting period what would be reported for Net Operating Cash Flow on the Statement of Cash is $(4,000)
Answer:
The __Paasche Index or Current-Weighted Index_______ is based on all the goods and services produced in the economy, which make it a current-weights index.
Explanation:
The Current-Weighted Index is an index that calculates the weighted average of prices or quantities or with the weights used proportionate to the quantities or prices of the goods. At regular intervals, the weights have to re-calculated in line with the current realities. This regular re-calculation of the weights, which is the basis for its name, makes it current.
