All categories

2 years ago

Overspeculation and a decrease in consumer confidence are both leading factors of:?

Business

1 answer:

melomori [17]2 years ago

6 0

Answer:

a stock crash

Explanation:

Speculation refers to trading high risk securities in an attempt to earn higher than normal returns. Speculators use stock market fluctuations to purchase and sell risky securities, and when it is aired with buying on the margin the risk increases by the margin amount. Speculators profit from abrupt changes in security prices, and sometimes will artificially increase the price of securities (i.e. a stock market bubble).

Consumer confidence is vital for an economy's health and when it falls, the first place that takes notice of it is the stock market. A decrease in consumer confidence means less private consumption which inevitably results in an economic recession.

When both factors meet, over speculation and a decrease in consumer confidence, the result is the bursting of the stock market bubble and a sharp decrease in prices.

You might be interested in

PLZZZZZZ NEED HELP!!!!!!!!

Naya [18.7K]

Third option I would say goodluck

5 0

2 years ago

The objectives of U.S. monetary policy are to achieve ______.

SSSSS [86.1K]

Answer:

A. maximum employment and stable prices

Explanation:

The Fed has various roles. Among its key objectives is to monitor the economy to ensure maximum sustainable economic growth. To achieve this growth, the Fed uses different monetary tools to regulate inflation and influence unemployment levels.

The Fed receives economic data from other government agencies that help it determine the appropriate cause of action. For example, if the bureau of labor statistics reports a high level of unemployment, it could mean the economy is slowing down. The Fed then applies expansionary policies to stimulate growth. If inflation is low or very high, it affects price stability. The Fed has tools to regulate inflation.

4 0

3 years ago

The company is now using only 70% of its normal capacity; it could fully use its normal capacity by processing the assembly furt

WINSTONCH [101]

Answer and Explanation:

The preparation of the analysis shows whether the assemblies should process further or not is presented below:

Differential revenue (38,000 units × ($51 - $44)) $266,000

Differential costs:

Direct material (38,000units × $2 per unit) ($76,000)

Direct labor (38,000units × $2 per unit) ($76,000)

Variable overhead (38,000units × $1 per unit) ($38,000)

Fixed costs ($160,000 - $225,000) ($65,000)

Additional income (loss) from processing further $11,000

Since the amount comes in positive so it should be processed further

7 0

2 years ago

when compared to the country of origin principle, the country of reception approach to jurisdiction over internet transactions

Oxana [17]

When compared to the country of origin principle, the country of reception approach to jurisdiction over internet transactions requires business managers to have more knowledge of the laws of other countries.

<h3>What is the significance of country of origin principle?</h3>

The country of origin principle is an important feature of leading parts of Union law. It is also known as home country control, country of origin rule, and country of origin principle.

The country of origin principle mainly aims to ensure the effective protection of the public interest in the country of origin.

Basically, the country of origin principle has the main purpose to vest exclusive jurisdiction to regulate in one Member State only.

Learn more about the country of origin principle here:-

brainly.com/question/16529312

#SPJ4

8 0

1 year ago

You are considering a new product launch. The project will cost $2,200,000, have a four-year life, and have no salvage value; de

ankoles [38]

Answer:

break-even level of output for this project (ignoring taxes)? (2 decimal places)

d1) What is the accounting break-even level of output for this project? (2 decimal places)

d2) What

3 0

2 years ago