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lisabon 2012 [21]
3 years ago
5

Lower interest rates cause a(n) ____________in capital utilization, which shifts the production function __________and thereby s

hifts the LRAS curve ______________.
Business
1 answer:
Anna71 [15]3 years ago
5 0

Answer:

The correct answer here to the first fill in the blank is Increase and for the second one it is Upward and for the third one it is Rightwards.

Explanation:

If there is any change in the interest rate or tax treatment , there will be an impact on the capital utilization , which will then help in determining the positions of the LRAS (long run aggregate supply curve ) curve. So if there is an decrease in the interest rate , then it will cause increase in the capital utilization, which will then shift the production to upwards and there by shift the LRAS curve rightwards. LRAS curve shifts to rightwards when in the long run , increase in investment ( which is due to lower interest rate ) causes the economy's capacity to produce, as the production cost is reduced.

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3 years ago
Miltmar Corporation will pay a year-end dividend of $3, and dividends thereafter are expected to grow at a constant rate of 5% p
motikmotik

Part a: The market capitalization rate is 9.25%

Part b: The intrinsic value of the stock is $70.59

Market capitalization rate is another name for the stock's required rate of return. It is called the market capitalization rate because we can infer it by observing the market value of the stock. One way to find this rate is the capital asset pricing model (CAPM).

Part a:

Let,

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r=f+\beta *(m-f)\\ r=0.05+0.85*(0.1-0.05)\\ r=9.25\%\\

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Part b:

Let,

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g = growth rate of dividends = 5%

The price is given by the dividend growth model:

Price=\frac{D}{r-g}\\ Price=\frac{3}{0.0925-0.05}\\ Price=\$70.59\\

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8 0
1 year ago
What is the definition of business
tester [92]

Answer:

See below

Explanation:

Business refers to the practice of producing or purchasing goods and services for sale to make a profit. It is the act of engaging in commercial activities of buying and selling products and services for profits.

Business entails individuals and companies' activities of supplying desired products and services to customers with profit motives. A businessperson identifies a need in the community. He or she sells to the community goods or services that satisfy that need a higher price to make a profit.

7 0
3 years ago
If an organization wishes to comply with the law and still increase the diversity of its workforce, it should ___________. selec
Mama L [17]

Answer:

The answer is use recruitment as a tool for attracting a more diverse and qualified applicant pool.

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3 years ago
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