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3 years ago

The Ricardian equivalence theorem states that

1 answer:

5 0

Answer: The Ricardian equivalence theorem states that : <u>"A. an increase in the government budget deficit has no effect on aggregate demand."</u>

Explanation: Ricardian Equivalence establishes that when the government increases the expenses financed with debt to try to stimulate the demand, this increase of the expenses does not produce any change in the demand.

This happens because the increases in the public deficit will be higher taxes in the future. Therefore, taxpayers reduce their consumption and increase their savings in order to offset the cost that will be the future tax increase.

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Name and discuss some positive communication skills that workers must display in the work environment.

Mumz [18]

They must have good communication manners and be polite

8 0

4 years ago

Read 2 more answers

National Geographic Magazine brought a bit of nature to New York as part of a week-long event promoting the magazine's cover sto

stiks02 [169]

Answer:

public relations

Explanation:

Promotional mix is the combination of various promotional methods by a business to meet its set goals.

It is made up of the following elements: advertising, sales promotion, public relations, personal selling, and direct marketing.

In the given scenario an invitation to news media to attend an interactive photography exhibit, which celebrated international and national parks is an attempt to improve the public relations of the event.

The news media is expected to publicise the event thereby meeting the Magazine's public relations need.

5 0

3 years ago

Narrow Falls Lumber has total assets of $913,600, total debt of $424,500, net sales of $848,600, and net income of $94,000. The

Black_prince [1.1K]

Answer:

The firm's sustainable growth rate is 13%.

Explanation:

The firm's sustainable growth rate can be calculated using the following formula:

Sustainable growth rate = Retention Rate * Return on Equity ............. (1)

Where;

Dividend payout ratio = 30%, or 0.30

Retention rate = 1 - dividend payout ratio = 1 - 0.30 = 0.70

Shareholder's equity = Total assets - Total debt = $913,600 - $424,500 = $489,100

Return on equity = Net income / Shareholder's equity = $94,000 / $489,100 = 0.19

Substituting the relevant values into equation (1), we have:

Sustainable growth rate = 0.70 * 0.19 = 0.13, or 13%

Therefore, the firm's sustainable growth rate is 13%.

3 0

3 years ago

Albend Holmes wants to deposit $4,500 in a bank account that pays 8.25 percent annually. How many years will it take for his inv

vova2212 [387]

Answer:

10 years

Explanation:

A = P(1 + r)^n

A (amount) = $10,000

P (principal) = $4,500

r = 8.25% = 0.0825

10,000 = 4,500(1 + 0.0825)^n

10,000/4,500 = 1.0825^n

2.22 = 1.0825^n

Log 2.22 = Log1.0825^n

nLog1.0825 = Log2.22

n = Log2.22/Log1.0825 = 0.3464/0.034 = 10 years (to the nearest year)

4 0

3 years ago

A large oil company requests ¢200 million of liability insurance to cover its oil business. State Insurance Company (SIC) has a

Shalnov [3]

Answer:

a. The reinsurance contract between SIC and Ghana Re is a proportional reinsurance contract. This type of contract specifies that the reinsurer (Ghana Re) will share a fixed proportion of the premiums and losses with the ceding company (SIC). In this case, the contract specifies that Ghana Re will pay 70 percent of the losses and receive 70 percent of the premiums, while SIC will pay 30 percent of the losses and retain 30 percent of the premiums.

b. If a ¢100 million covered loss occurs, SIC will be responsible for ¢30 million of the loss, while Ghana Re will be responsible for ¢70 million of the loss. This is because the contract specifies that SIC will pay 30 percent of the losses, and Ghana Re will pay 70 percent of the losses. In terms of premiums, SIC will retain ¢60 million of the premium, while Ghana Re will receive ¢140 million of the premium, less the ceding commission that is paid to SIC.

6 0

1 year ago