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Gekata [30.6K]
3 years ago
13

Keynes explained that recessions and depressions occur because of a. excess aggregate demand. b. inadequate aggregate demand. c.

excess aggregate supply. d. inadequate aggregate supply.
Business
1 answer:
julsineya [31]3 years ago
6 0

Answer: Option (b) is correct.

Explanation:

According to Keynes, the main cause of recessions and depressions is inadequate aggregate demand. when the total demand for goods and services falls as a result sales of the firms decreases. Lower demand for the products induce firms to cut down their production which results in unemployment. So, unemployment increases and lower profits further depressed demand for the goods and services.

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Torch Industries can issue perpetual preferred stock at a price of $58.50 a share. The stock would pay a constant annual dividen
Snezhnost [94]

Answer:

11.96%

Explanation:

Calculation for Torch Industries company's cost of preferred stock,

Using this formula

Cost of preferred stock = Dividend / Stock Price * 100

Where:

Dividend =$7.00

Stock Price = $58,50

Hence,

= $7 / $58.50 * 100

= 11.96%

Therefore the company's cost of preferred stock will be 11.96%

3 0
3 years ago
Rolling Coast Inc. issued BBB bonds two years ago. These bonds provided a yield to maturity (YTM) of 11.5 percent. Long-term ris
vaieri [72.5K]

Answer: 9.2%

Explanation:

The interest rate that Rolling Coast should expect to issue new bonds will be calculated thus:

Firstly, we will calculate the previous risk premium on BBB bonds which will be:

= 11.5% - 8.7% = 2.8%

Then, the new risk premium on BBB bonds will be:

= Previous risk premium / 2

= 2.8% / 2

= 1.4%

Then, the interest rate that Rolling Coast should expect to issue new bonds will be:

= 7.8% + 1.4%

= 9.2%

8 0
2 years ago
When private ownership rights are well-defined and enforced, owners of physical assets and resources
sukhopar [10]

Answer:

b. incur the opportunity cost of ignoring the wishes of others.

Explanation:

Opportunity cost in economics is seen as the forgone cost of doing something.

So in this instance where private ownership rights are well defined, everyone knows what is his own and what belongs to others.

The opportunity cost of this will be to ignore the wishes of others. They must now consider the wishes of others.

8 0
3 years ago
Exhibit 5-2 price and quantity demanded data price quantity demanded 5 20 4 25 3 30 2 35 1 40 using exhibit 5-2, what is the pri
Yuki888 [10]

Answer:

The price elasticity of demand is -5

Explanation:

Elasticity of demand measure the responsiveness of demand against the change in price of the product. It shows how much demand changes if there is the change in price.

Using mid point method

Change in Demand = $20 - $25

Change in Demand = -$5

Change in price  = $5 - $4

Change in price  = $1

As we know

Elasticity of Demand = Change in demand / Change in price

Elasticity of Demand = -$5 / $1

Elasticity of Demand = -5

4 0
3 years ago
Read 2 more answers
A next monthly interest payment on a loan with a principal balance of $19,531 is $109.86. what is the interest rate on the loan?
8_murik_8 [283]

The next monthly interest payment on a loan with a principal balance of $19,531 is $109.86. 6.75% is the interest rate on the loan.

The interest rate is the percentage of the loan that the borrower pays to the lender. Most loans pay interest in addition to the principal. Lending rates are usually expressed in his APR or APR which includes both interest and fees.

Monthly Interest Payment means the amount of interest payable on the Payment Date for the preceding Interest Period based on the interest calculated at the Monthly Interest Rate for the preceding Interest Period.

Interest is an additional payment known as interest on top of the principal paid to a lender for the right to borrow money.

Learn more about monthly interest payment at

brainly.com/question/2151013

#SPJ4

7 0
2 years ago
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