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stepladder [879]

2 years ago

15

Jim is a college senior with $50,000 in student loans. he earned $2,000 last year. he has no savings so he charged a $5,000 vaca

tion on his credit card. how would you characterize jim's use of credit?

1 answer:

laiz [17]2 years ago

5 0

<span>It is irresponsible use of credit because his current income is too low. Hope I helped!</span>

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Keynesian theory is based on the concept that saving and consumption are influenced primarily by real current disposable income.

Sonbull [250]

Answer:

saving and consumption are influenced primarily by real current disposable income

Explanation:

keynesian economics is a known form of economics that is of demand-side in the sense that it encourages government action to increase and decrease demand and output.

Consumption is using ur money by spending it on new goods and services out of a household's current income.

While Saving is simply not eating up or the act of not consuming all of one's current income. Keynes argument was that the interest rate is not the most necessary factor in saving and consumption decisions. Rather, real saving and consumption decisions depend primarily on a household's real disposable income

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2 years ago

A company that continually adds more features to an existing product to try to appeal to more customers may end up overwhelming

Sloan [31]

It can be noted that when the addition of more features to an existing product overwhelm the customers, it is known as feature fatigue.

<h3>What is feature fatigue?</h3>

Feature fatigue simply means when consumers shy away from products that appear to be rich in features.

This occurs ehen a company continually adds more features to an existing product to try to appeal to more customers may end up overwhelming customers and create an unintended consequence.

Learn more about fatigue on:

brainly.com/question/948124

5 0

2 years ago

You plan to save $2,400 a year and earn an average rate of interest of 5.6 percent. How much more will your savings be worth at

mixas84 [53]

Answer:

If the deposits are made at the beginning of the year, the future value will increase by $18,821.1.-

Explanation:

Giving the following information:

Annual deposit= $2,400

Interest rate= 5.6%

Number of periods= 40

<u>First, we will calculate the future value when the deposits are made at the end:</u>

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {2,400*[(1.056^40) - 1]} / 0.056

FV= $336,091.14

<u>Now, if the deposits are made at the beginning:</u>

FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}

FV= 336,091.14 + [(2,400*1.056^40) - 2,400]

FV= 336,091.14 + 18,821.10

FV= $354,912.24

Difference= 354,912.24 - 336,091.14

Difference= $18,821.1

If the deposits are made at the beginning of the year, the future value will increase by $18,821.1.-

8 0

2 years ago

Suppose Turkey has exports of 2 billion Turkish Lira, while its imports are 2 billion Turkish Lira. Calculate Turkey's "Index

Damm [24]

Answer:

40%

Explanation:

The index of openness measures how much a country is exposed to international trade. It is calculated by this formula:

Index of Openness= (Exports(X)+Imports (M))/GDP

Index of Openness= (2 billion+2 billion )/10 billion

Index of Openness= 0,4*100=40%

5 0

3 years ago

On October 15, 2019, the Department of Labor announced that the Producer Price Index (PPI) experienced an unexpected 1.1 percent

Kruka [31]

Answer:

A. We should expect higher interest rates and lower stock prices.

Explanation:

Producer price index refers to the price that producers recieve for their products. When there is an increase in PPI it means producers are receiving more revenue.

Increased revenue will result in more money in circulation. To regulate the excess money the monetary authorities will increase interest rate to reduce borrowing and by extension money in the economy.

Because there is now a need to get more funds by the companies, they will lower share prices to make them attractive to prospective investors.

5 0

2 years ago