Answer: closed shop
Explanation:
From the question, we are informed that in the late 1930s management at Atalanta Industries agreed to hire only those workers who were already members of the Electrical Union.
It should be noted that here, Atlanta agreed to a type of arrangement known as closed shop. This occurs when the workers have to belong to a particular union before they'll be employed. This was legal in 1930 but it was later declared illegal by Taft Hartley Act.
Answer: The simple money multiplier becomes smaller as less money is loaned out
Explanation:
In the money creation process, the simple money multiplier assumes that thee are no excess reserves that are held by the banks and that there are no currency being held by the public.
The consequence of a bank holding excess reserves will be that the simple money multiplier will become smaller when less money is being loaned out. There will be less money in circulation when excess reserves are held by the banks. This will result in the money multiplier to be smaller.
Answer:
tax increased = $22.22 billion
so correct option is 3. increase taxes by $22.22 billion.
Explanation:
given data
real GDP = $500 billion
employment GDP = $300 billion
marginal propensity = 0.9
solution
we know here that Inflationary gap will be
Inflationary gap = Real GDP - Full-employment GDP
Inflationary gap = $(500 - 300) billion
Inflationary gap = $200 billion
and tax Multiplier is
Tax Multiplier = 
Tax Multiplier = -9
here negative sign means that decrease real GDP by $9
so tax should be increased by $1
so we can say that decrease real GDP by $200 billion
and tax should be increased =
tax increased = $22.22 billion
so correct option is 3. increase taxes by $22.22 billion.
Answer:
$13.89
Explanation:
The computation of the value of stock is shown below:
Year Dividend Present value factor at 16% Present value
1 $1.90 0.862 $1.64
2 $2.10 0.743 $1.56
3 $2.30
Price $14.375 0.743 $10.68
The price is computed below:
= $2.30 ÷ 16% = $14.375
Total present value $13.89
The present value factor is computed below:
= 1 ÷ (1 + rate) ^ years
For Year 1 = 1 ÷ 1.16^1 = 0.862
For Year 2 = 1 ÷ 1.16^2 = 0.743
<span>A higher interest rate and/or a higher balance will result in higher interest earned.</span>