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grandymaker [24]
3 years ago
8

Refer to the figure above. if the economy is operating at full employment when its aggregate demand curve is ad2, then a further

increase in consumption and investment spending will cause: cost-push inflation, and the new equilibrium output will be more than q2 demand-pull inflation, and the new equilibrium output will be less than q2 cost-push inflation, and the new equilibrium output will be less than q2 demand-pull inflation, and the new equilibrium output will be more than q2
Business
1 answer:
solmaris [256]3 years ago
4 0
If the economy is operating at full employment when its aggregate demand curve is ad2, then a further increase in consumption and investment spending will cause, the new equilibrium output will be less than the q2 cost-push inflation, and the new equilibrium output will be more than the q2.
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Assume a project has normal cash flows. according to the accept/reject rules, the project should be accepted if the?
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Assume a project has normal cash flows. According to the accept/reject rules, the project should be accepted if the: IRR exceeds the required return.

Internal rate of return (IRR) is a metric used in financial analysis to estimate the potential profitability of an investment. The IRR is the discount rate that drives the net present value (NPV) of all cash flows to zero in discounted cash flow analysts. This suggests that an expected angel investment IRR of at least 22% is considered a good IRR. The higher

the project's projected IRR and the higher the amount above its cost of capital, the more net cash the project brings to the firm. So in this case the project appears to be profitable and management should go ahead with it.

Learn more about IRR  here

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6 0
2 years ago
Which of the following statements is false?
tangare [24]
I believe the In a limited liability partnership, all partners are limited partners
4 0
3 years ago
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On January 1, Year 1, the Starshina Company paid $25,000 for a photocopier with an estimated useful life of 4 years, and an esti
maksim [4K]

Answer: The amount of depreciation expense for Year 3 is $3,125.

Explanation: The double-declining method is otherwise known as the reducing balance method and is given by the formula below:

Double declining method = 2 X SLDP X BV

SLDP = straight-line depreciation percentage

BV = Book value

Under straight-line method, depreciation expense is (cost - residual value) / No of years = ($25,000 - $5,000) / 4 years = $5,000 yearly depreciation expense.

Under the double-declining method, 100%/4years = 25%, then 25% multiplied by 2 to give 50%

At Year 1, 50% X $25,000 = $12,500

At Year 2, 50% X $12,500 ($25,000 - $12,500) = $6,250

At Year 3, 50% X $6,250 ($12,500 - $6,250) = $3,125 (the depreciation expense would stop at this stage since the amount falls below the residual value).

7 0
3 years ago
A perpetual bond with a par value of $1,000 and a coupon rate of 7.75% has a current market price of $900. What is its yield to
photoshop1234 [79]

Answer: e. 8.61%

Explanation:

This is a perpetual bond so the price is calculable by;

Price = Coupon / Yield to Maturity

Coupon = 7.75% * 1,000

= $77.50

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900 * YTM = 77.50

YTM = 77.50/900

= 8.61%

6 0
3 years ago
When happens when demand exceeds supply?
ElenaW [278]

A shortage occurs when demand exceeds supply – in other words, when the price is too low. However, shortages tend to drive up the price, because consumers compete to purchase the product. As a result, businesses may hold back supply to stimulate demand.

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