Answer:
The answer to this question is option C Real Business Cycle theory
Explanation:
The Real business cycle theory is the theory that views hocks to tastes (workers' willingness to work, for example) and technology (productivity) as the major driving forces behind short-run fluctuations in the business cycle because these shocks lead to substantial short-run fluctuations in the natural rate of output.
Real business cycle models state that macroeconomic fluctuations in the economy can be largely explained by technological shocks and changes in productivity. These changes in technological growth affect the decisions of firms on investment and workers (labour supply)
Hence the answer is option C Real Business Cycle theory
Answer:
d. buyback
Explanation:
The scenario that is being described is a form of countertrade known as buyback. There are two reasons why this usually happens. The first is that the manufacturing company has limited access to liquid funds in the country which they are currently located and the goods provide better value. The second circumstance would be that they believe that the product being produced will increase in value and their profits will increase by holding the product as opposed to liquid funds.
Answer:
8.15 %
Explanation:
Weighted Average Cost of Capital (WACC) is the business Cost of permanent sources of finance pooled together. It shows the risk of the business and is used to evaluate projects.
WACC = Cost of Equity x Weight of Equity + Cost of Preferred Stock x Weight of Preferred Stock + Cost of Debt x Weight of Debt
<u>Remember to use the After tax cost of debt :</u>
After tax cost of debt = Interest x ( 1 - tax rate)
= 6.50% x (1 - 0.40)
= 3.90 %
therefore,
WACC = 11.25% x 55% + 6.00% x 10% + 3.90 % x 35%
= 8.15 %
Thus,
Quigley's WACC is closest to 8.15 %.
Answer:
The correct answer is option b.
Explanation:
A steep demand curve implies that the demand is relatively inelastic. In other words, a significant change in price will cause a small change in the quantity demanded.
A flatter demand curve, on the contrary, implies that a small change in price will cause a greater change in quantity demanded. In other words, demand is relatively elastic.
A change in price will not cause demand to change if the elasticity of demand is perfectly inelastic or when the demand curve is a vertical line.
A change in demand will be equal to the change in price if demand is unitary elastic.
