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Rom4ik [11]
3 years ago
13

In his Liquidity Preference Framework, Keynes assumed that money has a zero rate of return; thus

Business
1 answer:
nevsk [136]3 years ago
8 0

Answer:

The correct answer is A) when interest rates rise, the expected return on money falls relative to the expected return on bonds, causing the demand for money to fall.

Explanation:

Keynesian models are used to identify the level of equilibrium and analyze disruptions in the markets for goods and services, that is, to study production levels as well as aggregate income.

At present, the Keynesian models and the classical model are used as the basis for the complete models, since it has been noted that, even when those models present specifically Keynesian aspects (tales such as imperfect competition), they respond better to classical stimuli, Which has led to the production of a series of "standard models". In addition, he has had a recurrence in the use of the Keynesian model, in a new interpretation, introduced by Gregory Mankiw.

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identify five business functions that are applicable to the scenario above.Motivate your answer by quoting from the scenario ​
zavuch27 [327]

Answer:

heheheheheheheheheheheheheheheheheheheheheheheheheheheheeheheheheheheehehehehehe.

8 0
3 years ago
The stock price of Bravo Corp. is currently $100. The stock price a year from now will be either $160 or $60 with equal probabil
slavikrds [6]

Answer:

correct option is $38.21

Explanation:

given data

stock price = $100

stock price =  either $160 or $60

interest rate = 6%

exercise price = $135

solution

we get here Hedge ratio that is express as

Hedge ratio = (Pay off in case price appreciates - Pay off in case price depreciates) ÷ (Appreciated price - Depreciated price)     ..................1

put here value we get

Hedge ratio = ( Max [$135 - $160, $0] - Max[$135 - $60, $0]) ÷ ($160 - $60)

Hedge ratio = \frac{$0 - $75}{$100}

Hedge ratio = - 0.75

so here Price of Put option is

Price of Put option = -Hedge ratio × {Appreciated price ÷ (1 + risk free rate) - Present stock price}

Price of Put option =  -(-0.75)  × \frac{160}{1+0.06} - 100

Price of Put option = $38.21

so here correct option is $38.21

7 0
3 years ago
Operating income and tax rates for C.J. Company’s first three years of operations were as
Oksana_A [137]

Answer:

Correct option is C ; the DTA - Deferred tax asset  is $300,000

Explanation:

For losses of Year 2015 DTA should be created at 31/12/2015 as due to this loss future income will get reduced and consequently company's tax liability will get reduced.

DTA = 750,000 x 40% = 300,000

In year 2016 tax rate is 40% so DTA will be at this rate as after setting off the loss of year 2015 with income of 2016 the company will benefit by 750000 x 40%=300000 due to lesser income tax liability.

Hence the DTA - Deferred tax asset  is $300,000

8 0
4 years ago
Identify the possible reason or reasons for this stark difference between income inequality and consumption inequality. Intergen
Fudgin [204]

Answer:

  • The richest quintile has the ability to save a larger percentage of its income.
  • Individuals experiencing temporary fluctuations in their incomes are more likely to maintain moderate spending habits.

Explanation:

First part of this question reads:

In the United States, the richest quintile of the population receives 13 times as much income as the poorest quintile. However, the richest quintile only spends 4 times as much as the poorest quintile.

The richest quantile can afford to save more than the poorest quantile because they get enough income to manage their daily needs and then save. The poorest quantile on the other hand face a daily struggle and so have to spend all or most of their income to survive.

When the richer quantile goes through temporary fluctuations, they maintain moderate spending because they know it is temporary and so they keep saving. This is not the case for the poorer quantiles who have to spend according to their income - regardless of its fluctuating - to survive.

7 0
3 years ago
Which of the following statements correctly describes how accounting helps managers? Select one: a. Accounting provides better w
il63 [147K]

Answer:

The correct answer is letter "B": Accounting centralizes and organizes processes.

Explanation:

Managerial Accounting is internally-based accounting that helps managers measure the results of their decisions. This is in contrast to financial accounting which emphasizes in more general, higher-level financial results of the company.  

One common managerial accounting tool in determining the profit margin in each of the company's products. This information helps managers set product prices and ensure they are making appropriate profit margins.

8 0
3 years ago
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