1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Hunter-Best [27]
3 years ago
14

What was the major financial change between post-World War II borrowers and borrowers after 1970?

Business
1 answer:
elena-14-01-66 [18.8K]3 years ago
7 0
<span>Two oil shocks, an expansive monetary policy, and growing competition as Europe and Japan recovered from the devastation of World War II.
By the end of the decade, the country went into what came to be called
stagflation, a combination of no growth and rising inflation. In effect, the country had the worst of both worlds.
President Carter’s appointment of Paul Volcker as Federal Reserve Chair started the path to change. He restricted the money supply in a war that drove up unemployment but eventually tamed inflation.
The Reagan presidency started with cuts in spending and income taxes in what was called a ‘supply-side experiment.’
The intent was to stimulate saving, work, and investment. The emphasis that the supply-side approach put on incentives is now a more prominent part of economic thinking, but the experiment itself led to larger fiscal deficits.</span>
You might be interested in
Suppose you invest $2500 each year in a savings account that earns 12% per year. How much will be in the account in 10 years?
iVinArrow [24]

Answer:

Final Value= $43,871.84

Explanation:

Giving the following information:

Suppose you invest $2500 each year in a savings account that earns 12% per year.

Number of years= 10

To calculate the final value we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit= 2,500

i= 0.12

n=10

FV= {2,500*[(1.12^10)-1]}/0.12= $43,871.84

4 0
3 years ago
Fama’s Llamas has a WACC of 9.7 percent. The company’s cost of equity is 12 percent, and its pretax cost of debt is 7.5 percent.
Bezzdna [24]

Answer:

0.4766

Explanation:

Given:

WACC = 9.7%

Company’s cost of equity = 12%

Pretax cost of debt = 7.5%

Tax rate = 35%

Now,

WACC

=  Weight × Cost of equity + (1 - weight) × Pretax cost of debt × (1-tax rate)

or

0.097 = weight × 0.12 + ( 1 - weight ) × 0.075 × (1 - 0.35)

or

0.097 = 0.12 × weight + 0.04875 - 0.04875 × weight

or

0.04825 = 0.07125 × weight

or

weight = 0.6772

also,

weight = \frac{\textup{Equity}}{\textup{Debt + Equity}}

or

\frac{\textup{1}}{\textup{weight}}  = \frac{\textup{Debt+equity}}{\textup{Equity}}

or

\frac{1}{0.6772} = \frac{\textup{Debt}}{\textup{Equity}}  + 1

or

1.4766 = \frac{\textup{Debt}}{\textup{Equity}}  + 1

or

\frac{\textup{Debt}}{\textup{Equity}}  = 0.4766

5 0
3 years ago
BEFORE GETTING OUT OF YOUR CAR, AFTER PARKING AT A TWO-WAY STREET CURB, YOU SHOULD:
Semenov [28]

Answer:

C. Look for cars of bicycles on the traffic side of your vehicle.

Explanation:

Safety is always first, for you, and the people around you. To minimize risk of injury, you must check for oncoming cars or bikers.

7 0
3 years ago
Read 2 more answers
Sheaves, Inc., has sales of $50,000, costs of $23,000, depreciation expense of $2,250, and interest expense of $2,000.
Dominik [7]

Answer:

$21,767.50

Explanation:

<u>Computation table:</u>

<u>Particular                      Amount</u>

Sales                             $50,000

Less: Costs                   $23,000

<u>Less: Depreciation       $2,250</u>

<u>EBIT                              $24,750</u>

<u>Less: Interest               $2,000. </u>

<u>EBT                              $22,750</u>

<u>Less: Tax (23%)           $5,232.50 </u>

<u>Net Income              $17,517.50</u>

$24,750 + 2,250 -5,232.50

$21,767.50

6 0
3 years ago
which of the following is not one of the six functional areas of business that sits on a foundation of business law?
mina [271]

Answer:

state and federal taxation

Explanation:

8 0
2 years ago
Other questions:
  • "how does one define intelligence?" is a question that would be of particular interest to ____________________.
    6·1 answer
  • I have been working on a Elementary Spanish 1 assignment for about 30 minutes, and I am now stuck. Can you please help me with t
    7·1 answer
  • For each of the following, describe the opportunity cost when you decide to do each activity.
    10·1 answer
  • on average, someone with a bachelor's degree is estimated to earn _ times mire than someone with a high school diploma
    14·1 answer
  • The instructions for the OS provided by application software are known as _____.
    6·2 answers
  • Mack's guitar fabrication shop produces low cost, highly durable guitars for beginners. Typically, out of the 100 guitars that b
    5·1 answer
  • Suppose that the United States and China trade exclusively with each other. What will happen to the value of the U.S. dollar, ce
    7·1 answer
  • One of the primary reasons for the slow response to help the victims of Hurricane Katrina was the failure of assistance to arriv
    7·1 answer
  • If prices rise over​ time, then real GDP will be A. smaller than nominal GDP in years before the base year. B. larger than nomin
    9·1 answer
  • What are the three major flows in the economy?​
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!