Based on the fact that the increase in investment led to such an increase in equilibrium expenditure, then the expenditure multiplier can be found to be E. $40 billion ÷ $10 billion = 4.
<h3>How to find the expenditure multiplier?</h3>
The expenditure multiplier shows how much expenditure will increase by, as a result of an increase in investment or other factors that bring about a cash injection into the economy.
The expenditure multiplier in this case, can be found by the formula:
= Equilibrium expenditure / Increase in investment
Solving for the Expenditure multiplier gives:
= 40 billion / 10 billion
= 4
Options for this question include:
- A. $10 billion $40 billion = - $30 billion.
- B. $40 billion $10 billion = $30 billion.
- C. $10 billion x $40 billion = $400 billion.
- D. $10 billion ÷ $40 billion = 0.25.
- E. $40 billion ÷ $10 billion = 4
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Answer:
$5,000 realized, but not recognized loss
Explanation:
Based on the above information given we were told that two years earlier She purchased some shares for the amount of $15,000 in which in order for her to offset few of her gains she sells those 100 shares of Bear Corporation for the amount of $10,000 making her to REALIZED the amount of $5,000 ($15,000-$10,000) reason been that a loss will be realized instantly in a situation were an assets is sold out for a loss.
Therefore the tax consequences to Andrea this year will be the amount of $5,000 Realized, but not recognized loss.
True, Shareholders exercise ownership control through the power of their votes.
<h3>What is Shareholder Ownership ?</h3>
Common shareholders are part of the owners of a corporation, they have bought some shares or stocks of the corporation either through public offerings or the the Stock markets.
As part of the owners of a corporation, common stock holders have certain rights except otherwise stated in the agreement.
- The right to vote during the general meeting to decide how the leadership of the corporation will be.
- The right to share in the profits of the corporation.
- Common shareholders are notified before issuance of new stock.
- They have some degree of control over the management selection process etc.
A corporation is owned by it's shareholders as a group. Each shareholder holds a proportion of the share capital of a corporate and has voting rights in proportion of his shareholdings.
Therefore , we can conclude that the statement is TRUE.
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Answer:
The correct answer is letter "D": optimal currency area.
Explanation:
An Optimal Currency Area or OCA refers to a region that allows the establishment of a common currency for different countries that have similar economic patterns allowing them to set similar macroeconomic policies. The objective is the integration of those economies promoting growth and currency stability.
However, <em>economic hardship in Greece put block currencies such as the euro at risk since it unbalanced the Euro weight in western Europe. The relatively recent United Kingdom auto exclusion of the European Union (EU) through the "Brexit" is also a sign that the European zone has many countries looking for different interests.</em>
Answer:
True
Explanation:
Every organization has an internal and external environment , in order for the organization to be successful, it is important that it scans its environment regularly to assess its developments and understand factors that can contribute to its success.
Environmental scanning is the identification of opportunities and threats affecting the business for making strategic business decisions, as part of the environmental scanning process, the organization collects information regarding its environment and analyze it to forecast the impact of changes in the environment.
