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Darina [25.2K]
3 years ago
11

Monetary policy has a​ ________ effect on aggregate demand in​ a(n) ________​ economy, and fiscal policy has a​ ________ effect

on aggregate demand in​ a(n) ________ economy.A. weaker; open;​ weaker; open
B. weaker; closed;​ stronger; closed
C. stronger; closed;​ weaker; open
D. ​stronger; open;​ weaker; closed
Business
1 answer:
PIT_PIT [208]3 years ago
5 0

Answer:

The correct answer is D

Explanation:

In the open economy, there is a regime of flexible exchange which means that the monetary policy will be more effective than the fiscal policy as the aggregate demand (AD) is boosted by the depreciation in the exchange rate which result in decrease in the interest rate.

So, the monetary policy has stronger effect on AD in the open economy and the fiscal policy has weaker impact on AD in closed economy.

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If management wants to maximize its stock price, and if it believes that the dividend irrelevance theory is correct, then it mus
kupik [55]

Answer:

The correct answer is False.

Explanation:

This statement is false, since the residual theory of dividends argues that these are irrelevant, that is, that the value of the company is not affected by its dividend policy. The main drivers of this theory are Modigliani and Miller. Both authors affirm that the value of the company is determined solely by the profitability and the degree of risk of its assets (investments), and that the way in which the organization divides its income between dividends and reinvestment does not have a direct effect on its value .

However, some studies show that significant changes in dividends affect the price of shares in the same direction, that is, increases in dividends translate into increases in stock prices, and vice versa. In response, M and M propose that the positive effects of dividend increases be attributed, not to the dividend itself, but to the informational content of dividends with respect to future income. Thus, any increase in dividends would cause investors to raise the price of the shares, while a decrease would cause a corresponding decrease in the price of the shares.

7 0
3 years ago
Dependable Appliances, Inc. and Elain enter into a contract for a sale of kitchen appliances. Dependable, a merchant who deals i
Anuta_ua [19.1K]

Answer:

B) fit for the ordinary purpose for which such goods are used.

Explanation:

An implied warranty of merchantability means that the products sold should fulfill an ordinary buyer's expectations and should be fit for the purpose intended.

All products carry an implied warranty of merchantability unless expressly disclaimed or identified as a sale "with all faults" or "as is".

6 0
3 years ago
he next dividend payment by Savitz, Inc., will be $2.34 per share. The dividends are anticipated to maintain a growth rate of 4.
Elan Coil [88]

Answer:

The Required Return is 10.82%.

Explanation:

The Dividends Model for the Constant Growth is given below:

                                          P0 = D1 / (Ke - g)

Arranging the above equation for "Ke", that is the Required Return:

                                      ⇒ Ke = (D1 / P0) + g

Putting Values and we get:

Required Return = Ke = (2.34 / 37) + .045 = .1082 = 10.82%.

Thanks!

8 0
3 years ago
Lori prefers to purchase cosmetics at self-service drug stores as saleswomen at cosmetic counters in department stores intimidat
Stells [14]

Answer: Social comparison

Explanation:

 The social comparison is one of the important theory in the society which state that the individual person can determine their own personal and the social importance by comparing their own qualities with the other people. The coal comparison is mainly proposed by the Leon festinger in the year 1954.

 According to the given scenario, the self evaluation is basically conducted by the Lori is best illustrate example of the social comparison as people generally compared themselves with the other people for the purpose of self motivation and improvement.  

Therefore, Social comparison is the correct answer.

8 0
3 years ago
When an interest-bearing note is dishonored at maturity and ultimate collection is expected, the entry for the dishonoring, assu
tresset_1 [31]

Answer:

The correct answer is C. a credit to Notes Receivable and Interest Revenue.

Explanation:

When this registration is made, what occurs is to decrease the obligation they have with our organization, and an increase in income due to the recognition of the interests effectively recognized at the expiration of the obligation. Dishonoring the note means recognizing that we no longer have a callable value, and that the value receivable is extinguished as a result of the end of the agreed period of permanence.

8 0
3 years ago
Read 2 more answers
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