Answer:
M3 (Broad Money)
M3 = M1 + Time deposits with commercial banks (Fixed deposits, Recurring deposits). MIND IT: M3= M1+time and NOT M3=M2+time.
Answer:
The correct answer is option d.
Explanation:
Fiscal policy is a tool to affect economic activities and GDP through changes in government spending and tax revenue. Contractionary fiscal policy is used to reduce economic activities. It is adopted in case of inflationary pressure.
Contractionary fiscal policy may involve a reduction in government spending which will eventually reduce aggregate demand. Or the government could increase the tax rates. This will cause the disposable income of the consumers to reduce.
As the purchasing power decreases with the decline in disposable income, consumer spending will get reduced as well. This will further cause the aggregate demand to decline.
The government can use either of them or both at the same time.
Answer:
A conglomerate is a business combination merging more than three businesses that make unrelated products.
Explanation:
A conglomerate is a group of companies with different activities. This business concept spread to Europe from the United States after World War II. The benefits were considered to increase the company's long-term profitability by spreading risk to various business areas.
However, conglomeration often led to an increase in administrative costs. Furthermore, the conglomerate's management rarely had the competence to handle a number of companies in different industries. The conglomerates that were listed on the stock exchange were regularly valued lower than the total market value of the subsidiaries, indicating that the stock market did not believe in the very idea of creating such corporate groups. The risk diversification that the conglomerate was aiming for could equally well be achieved by the individual investor in his own equity portfolio. Therefore, since the 1970s, many conglomerates have split up, and most companies have instead focused on creating competitive advantages through their core business.
Answer: Cohen is correct
Explanation:
The contract between Cohen and Windsor stipulated in clear terms that if Windsor breaches the contract, the deposit would be kept by Cohen as liquidated damages.
The contract to the best of our knowledge, did not add an exception to this breach for lack of financing and so when Windsor's expected financing fell through and she breached the contract, there was nothing to void this clause in the contract which means that Cohen was well within his rights to keep the deposit.
