When Steven askes questions in an open-minded way, he avoids:

If the united states experiences lower personal savings rates, then it must be the case that?

Arada [10]

If the united states experiences lower personal savings rates, then it must be the case that any increase in domestic investment must be financed by foreign funds.

Because consumer spending accounts for roughly 70% of the US economy, even a small reduction in consumer spending can reduce aggregate demand and economic activity. A falling saving rate, on the other hand, may result in temporarily faster economic growth as people spend a larger portion of their earnings on goods and services.

National savings in the United States have fallen in recent decades as a result of lower private savings rates and higher federal budget deficits. A low national savings rate is especially troubling given the large number of workers retiring now or soon in the United States. With fewer workers able to save and more people drawing down those savings as retirees, government budget deficits are likely to rise further. This reduces the national savings rate even further, harming future economic growth and living standards. Due to low saving rate the US needs to borrow foreign funds for domestic investment.

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8 0

1 year ago

Consumers are more likely to perceive the value of a product to be less than its price tag indicates if the product's _______. a

Mice21 [21]

Consumers are more likely to perceive the value of a product to be less than its price tag indicates if the product's (B) price is set too high in their minds.

Consumers assume that a higher price denotes a higher quality, but they also assume that they will have to make a bigger financial investment to buy the product.
As a result, perceived value is the result of the trade-off between perceived quality (i.e., gain) and perceived sacrifice (i.e., loss).
Lower costs may help you win the sale if the customer feels like they are receiving a good deal.
On the other side, cheap prices could imply that the item is of subpar quality.

<h3>What is consumer perception of price?</h3>

Price perception is influenced by how well people comprehend and interpret price information.
One of the customer evaluations used to compare the level of sacrifice required to receive items and services is price perception (Zeithaml,1988).

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8 0

1 year ago

As part of thinking about the _____, managers track the Consumer Price Index, manufacturing and retail inventory levels, and con

lana [24]

Answer:

Economic Dimension

Explanation:

Economic dimension implies that the effect of economic factors on a particular circumstance which a company faces are taking into consideration while making a decision.

In the question, the three economic factors mentioned to be considered by the company as part of the economic dimension are Consumer Price Index, manufacturing and retail inventory levels, and consumer confidence measures.

The Consumer Price Index (CPI) measures the weighted average of prices of a basket of commodities like cloth, food, transportation, etc. This is calculated as average of the changes in prices of the chosen basket of goods and services.

Manufacturing inventory are raw material or work-in-progress items kept in stock to produce goods, while retail inventory are the finished goods kept in stock to be sold.

Consumer confidence measure can also be referred to as the Consumer Confidence Index (CCI) and it is the level of assurance which consumers display about general economic condition in a country through the way they spend or save.

How a company monitor and prepare for each of the three factors will determine its success or failure.

4 0

2 years ago

Delta Manufacturing has budgeted the following unit sales: 2019 Units April 25,000 May 40,000 June 60,000 July 45,000 Of the uni

Greeley [361]

Answer:

The budgeted sales for coastal division for second quarter 2019 is $750,000

The budgeted sales for central division for second quarter 2019 is $900,000

Explanation:

Coastal division sales budget for the second quarter 2019

Months Quantity sold price total revenue

April 25,000*40%=10,000 $15 $150,000

May 40,000*40%=16000 $15 $240,000

June 60,000*40%=24000 $15 $360,000

Total coastal division budgeted sales for second quarter $750,000

Central division sales budget for the second quarter 2019

Months Quantity sold price total revenue

April 25,000*60%=15,000 $12 $180,000

May 40,000*60%=24,000 $12 $288,000

June 60,000*60%=36,000 $12 $432,000

Total coastal division budgeted sales for second quarter $900,000

8 0

3 years ago

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The expected average rate of return for a proposed investment of $650,000 in a fixed asset, with a useful life of 4 years, strai

nexus9112 [7]

The expected average rate of return in the fixed asset above is 36.92%. The rate of return is the income or loss of a proposed investment in a specified amount of time. In this case, a company wants to buy a 4-year life fixed asset which can increase the company's income by $240,000. We can calculate the rate of return by dividing the net income from the investment with the proposed investment to obtain the portion of return received from the investment<span>. Formula: (Net Income From The Investment/Proposed Investment) x 100%.</span>

8 0

3 years ago