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shtirl [24]
4 years ago
6

c. Which asset was riskiest during the Great​ Depression? How does that fit with your​ intuition? ​ (Select the best choice​ bel

ow.) A. The riskiest assets were the corporate bonds. Intuition tells us that company debt should be riskiest. B. The riskiest assets were the stocks in the​ S&P 500. Intuition tells us that large companies should be the riskiest. C. The riskiest assets were the small stocks. Intuition tells us that smaller companies should be riskiest. D. The riskiest assets were the Treasury Bills. Intuition tells us that government securities would be the riskiest.
Business
1 answer:
olga_2 [115]4 years ago
3 0

Answer:

The correct answer to the question is OPTION C (The riskiest assets were the small stocks. Intuition tells us that smaller companies should be riskiest.)

Explanation:

The riskiest assets were the small stocks.

The Great Depression was a term in the 20th century that became synonymous with hardship, suffering due significantly to the failure of the economy in the world with evidence of crash in the stock market.

The riskiest assets were the small stocks because it already crashed as panic made some stop investing and a lot of banks lost money. So small stocks were not lucrative again then, making it a risky asset to have.

Instinct tells us that smaller companies should be the riskiest because investing in smaller companies could be less lucrative due to a fall in the value of shares in tough times as compared to bigger companies.

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g An increase in taxes when the economy is above full employment ​ ______ aggregate demand and real​ GDP, and the price level​ _
shtirl [24]

Answer:

C.  ​decreases; falls

Explanation:

As we know that

The rise in taxes results in low disposable income for individuals that lowered the spending of the consumer also the consumer spending is an element of the aggregate demand so ultimately it declines that result the curve to shift leftward or downward

Due to this, the real GDP also falls, and the price level too

Hence, the correct option is c.

8 0
3 years ago
Classify each possible change listed according to whether it will make small farms more efficient or less efficient based on the
dybincka [34]

Full question:

Classify each possible change listed according to whether it will make small farms more efficient or less efficient based on the information in the Washington Post article Small vs. Large: Which Size Farm Is Better for the Planet:

Plant more disease-resistant crops, reduce the number of different crops planted, avoid planting genetically modified crops, rely more on organic rather than synthetic methods of farming,

Answer and Explanation:

Plant more disease-resistant crops is classified under more efficient and Less costly. The writer believes disease resistant crops increase efficiency as there is reduced occurrence of death of crops and consequent increased losses and costs

Reduce the number of different crops planted is classified under more efficient and less costly. The writer emphasizes specialization in farming whereby for example planting rice or corn should be done alone and not mixed with other crops as this would be less efficient and costly.

Avoid planting genetically modified crops is classified less efficient and more costly. The writer encourages planting genetically modified crops as genetically modified plants are geared towards increased plant product and yield from genetically optimized plants

Rely more on organic rather than synthetic methods of farming is classified less efficient and more costly. In the article, the writer believes chemically induced crops are bad for the environment and don't yield much in efficiency with time

7 0
3 years ago
Fair use allows individuals to break copyright so long as they ________.
Lady bird [3.3K]
Fair use allows individuals to break copyright so long as they b. <span>Can prove they are not infringing on copyright.

Using another person's work without his permission is considered copyright infringement. However, fair use allows people to use other people's work without their permission, as long as the works used are for commentary, criticism, new reporting, or educational purposes. As long you can prove that a work was not used for infringement purposes, you can break copyright.</span>
3 0
4 years ago
Read 2 more answers
What is the age requirement for making a savings account
Semenov [28]
In most countries it's 18 to do it independently.. Hope this helps
5 0
3 years ago
Texarkana Company exchanged equipment that cost $85,000 and has accumulated depreciation of $29,800 and a fair value of $60,000.
Alexus [3.1K]

Answer:

Gain $4,800

Explanation:

Calculation for gain to be recognized from the exchange

Using this formula

Gain= [(Cash received / {Cash received + Fair value}) * {(Fair value+ Cash received- (Exchanged equipment cost - Accumulated Depreciation)}]

Let plug in the formula

Gain= [($12,000 / {$12,000 + $48,000}) * {($48,000 + $12,000 - ($66,000 - $30,000)}],

Gain= [($12,000 /$60,000) * $60,000- $36,000]

Gain=0.2* $24,000

Gain= $4,800

Therefore the  gain to be recognized from the exchange is $4,800

8 0
3 years ago
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