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pishuonlain [190]
3 years ago
14

Identify how planned investment will change in each scenario. Airwings, a commercial airline manufacturer, becomes optimistic ab

out economic conditions after seeing reports of strong growth in consumer spending. Due to Airwings, planned investment The Federal Reserve announces an end to accommodative monetary policy, and is now implementing policy tools that will increase the real interest rate. Due to the Fed, planned investment In an effort to reduce constant budget deficits, Congress announces plans to increase the corporate income tax rate. Due to the Congress, planned investment A major recession has reduced consumption spending, which has hurt profit levels for Aston-Benz, a high-end car manufacturer. Due to the recession, planned investment
Business
1 answer:
kari74 [83]3 years ago
7 0

Answer:

See explaination for the details of the answer.

Explanation:

1) Increase

As business is optimistic about its future, such business will start capacity expansion to cater for consumer demand.

2) Decrease

Higher real interest rate simply means borrowing cost is higher for the firms and so that they will reduce the investment in respose to that.

3) Decrease

A lower tax means higher profits and firms can pass these benefits to consumers with lower prices, to employees with higher wages and to the government with tax on profit. However, if the rate of tax itself has been increased then in that case corporates will see higher tax as a dampener in sentiments and they might curtail investment plans.

4) Decrease

A recession means there will be lesser economic activity overall and demand will be lower so as the consumption. In such case, planned investment will be reduced.

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Why is it important to review your personal information for accuracy when you receive an invoice?
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Suppose that three firms make up the entire wig manufacturing industry. One has a 60% market share, and the other two have a 20%
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Answer:

4400

Increase

c. An index of 10,000 corresponds to a monopoly firm with 100% market share

Explanation:

Here are the options to the last question

Why is the largest possible value of the Herfindahl index 10,000 ?

a. An index of 10,000 corresponds to 100 firms with a 1% market share each

b. An industry with an index higher than 10,000 is automatically regulated by the Justice Department

c. An index of 10,000 corresponds to a monopoly firm with 100% market share

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If one of the firms leaves the industry, the market share would be distributed between the two firms and this would cause the HHI index to increase as firm's concentration would increase

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Gina changes the amount of milk she purchases depending on whether it costs $1,$1.50, or $1.75 a pound. What other information d
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Answer: how much butter she buys at each price point.

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Marc is 32 and married to Estella, who is 30. Estella is a stay-at-home mom to their two children, ages 1 and 4. They currently
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