Answer:
a. Year 1
Asset Turnover = Total sales/Average assets
= 75,000 / [(54,000 + 46,000)/2]
= 1.5
Year 2
= 75,480 / [(46,000 + 42,800)/2]
= 1.7
b. Effectiveness in the use of assets to generate revenue
A higher Asset turnover ratio means that the company is effectively using their assets to generate revenue. As there is no company listed to compare Home Depot to, it can be said that they are making effective use of their asset to generate revenue as they are making more revenue than the value of their assets.
Answer:
The answer is: B) Banks will increase their nominal interest rates
Explanation:
If the nominal interest rate is 6% and the inflation rate is 2%, then the real interest rate will be 4%. If the inflation rate is expected to increase to 4% (a 2% increase), banks will usually increase their nominal interest rate in the same proportion (a 2% increase) so the new nominal interest rate would be 8%. This is done in order to keep the real interest rate stable.
Communication. If an employee knows how to communicate then they can resolve conflicts between colleagues and also employees. If they know how to communicate they would know how to talk to customers, superiors and fellow employees. Communication is key. This might lead to customer loyalty, satisfied superiors and a friendly culture established in the workplace.
Answer:
The correct answer is −0.05.
Explanation:
The initial budget constraint is given by 300 = 2X + 4Y.
The consumer purchases 100 units of good X and 25 units of good Y.
The price of X increases to $4 per unit, resulting in a new consumption bundle consisting of 60 units of X and 15 units of Y.
Inverse demand function of good X:
Q = a - bP
When P = 2 [From initial budget constraint], Q = 100
So, 100 = a - 2b ..... (i)
When P = 4, Q = 60
60 = a - 4b .......(ii)
on subtracting equation (ii) from equation (i)
40 = 2b
b = 20
So,
a = 100 + 2b [From (i)]
= 100 + 40 = 140
So inverse demand function:
Q = 140 - 20P
Or,
20P = 140 - Q
P = 7 - 0.05Q
Slope of the inverse demand function
=
= - 0.05