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3 years ago

If households and firms increase the level of private savings because they become pessimistic about the future, then:

1 answer:

8 0

<span>If people are saving their money because of pessimistic feelings about the future then it will have an impact on current spending in the economy. When people are saving instead of investing money or purchasing large items such as homes or vehicles than the businesses in those markets are affected. For example, if there is no one buying new houses, then builders will see a decrease in work and the companies that provide building supplies will be affected. The people in the companies will also begin spending less as there is less work and less money to go around which also affects the economy on a large scale.</span>

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Psychologists are now often included on interdisciplinary healthcare teams to

Aliun [14]

<span>Bring in the psychological aspects of healing and good health behavior for patients.</span>

5 0

3 years ago

Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither

alina1380 [7]

Answer:

producer surplus

consumer surplus

neither

Explanation:

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.

Consumer surplus = willingness to pay – price of the good

The highest amount i was willing to buy the watch is $71 but the price was $65. this illustrates a consumer surplus

Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product

Producer surplus = price – least price the seller is willing to accept

The least amount the textbook seller was willing to sell was $48 while the price the textbook was sold was $54. thus, a illustrates a producer surplus.

for statement c, a transaction did not take place, so, it is neither a producer or consumer surplus

5 0

3 years ago

Answer the question on the assumption that the legal reserve ratio is 20 percent. suppose that the fed sells $500 of government

mel-nik [20]

The sale and purchase of government securities by the Fed would leave reserves unchanged.

<h3>What is the effect of the purchase and sale of government securities?</h3>

The Fed is the Central Bank of the United States. One of the duties of the Fed is to conduct monetary policies. Monetary polices are used to affect the level of money supply in the economy.

One of the monetary policy tools of the Fed is open market operation. When the Fed sells government securities, it is known as an open market sales which reduce money supply. When the Fed buys government securities, it is known as an open market purchase which increases money supply.

Reserve ratio is the percentage of deposits that is required of commercial banks to keep as reserves. Reserve ratio is determined by the Fed.

Change in reserve = ( value of government securities bought / reserve ratio) - (value of government securities sold / reserve ratio)

($500 / 0.2) - (500 / 0.2) = 0

To learn more about reserve ratio, please check: brainly.com/question/6831267

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7 0

2 years ago

When determining the markup to be used in a cost-plus pricing formula, many companies base the markup on a target: return on inv

Grace [21]

Answer:

return on investment

Explanation:

At the time of calculating the markup that used for the formula of cost plus pricing many companies would base the markup on the target return on investment as the return on investment considered the net operating income as it takes after considering all the other type of cost

Therefore as per the given situation the first option is correct

6 0

3 years ago

The records of Gemini Company show a contribution margin ratio of 40%. The company desires to earn a profit of $40,000 and has f

seraphim [82]

Answer:

$300,000

Explanation:

Given that,

Contribution margin ratio = 40%

Company desires to earn a profit = $40,000

Fixed costs = $80,000

Required sales revenue:

= (Fixed cost + Desired profit) ÷ Contribution margin ratio

= ($80,000 + $40,000) ÷ 0.40

= $120,000 ÷ 0.40

= $300,000

Therefore, the sales revenue of $300,000 would have to be generated in order to earn the desired profit.

7 0

3 years ago