1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nady [450]
3 years ago
15

The term _____________ describes a situation where a ________________ causes a reduction in the buying power of income, even tho

ugh actual income has not changed.
Business
1 answer:
olganol [36]3 years ago
4 0

Answer:

income effect; higher price

Explanation:

Income effect is a change in demand for a good or service as a result of a change in a consumer's purchasing power resulting from a change in income or price.

If price increases, the purchasing power is reduced and as a result of the income effect, the demand for a good falls.

Income effect is one of the factors that explain a downward sloping demand curve. the other effect is the substitution effect

You might be interested in
Felipe works for an insurance agency with about 50 employees. The HR director recently sent an email requesting information on w
Zinaida [17]

Answer:

C.  Most people used the reply all button

Explanation:

This is a problem that can occur in companies due to misuse of e-mail functionalities. What happened in this case was that the employees who responded to the HR director's request email, used the reply button to all contacts forwarded in the director's original email, which ends up creating an email chain unnecessary and can hinder and delay the work of other employees, who need to see emails related to their role.

Therefore, the essential thing is that each employee makes use of the e-mail tool effectively, responding only to the recipient of the e-mail and avoiding sending unnecessary and private messages to contacts not interested in the professional subject addressed in the e-mail.

7 0
4 years ago
For each growth rate below, use the rule of 70 to calculate how long it will take incomes to double. Instructions: Round your an
STatiana [176]

Answer:

Explanation:

Rule 70 is used to estimate how long it tales a cashflow amount to double.

The formula is as follows ;

Number of years = 70 / growth rate

<u>At 1.4% growth rate;</u>

Number of years = 70 / 1.4 = 50

<u>At 3.2% growth rate;</u>

Number of years = 70 / 3.2 = 21.88

<u>At 4.9% growth rate;</u>

Number of years = 70 / 4.9 = 14.29

<u>At 6.4% growth rate;</u>

Number of years = 70 / 6.4 = 10.94

<u>At 7.5% growth rate;</u>

Number of years = 70 / 7.5 = 9.33

4 0
4 years ago
You invest $1,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return o
gladu [14]

Answer:

The rate of return on the risky asset is 16% and on treasury bill is 6% and we need a return of (1100-1,000)/1000= 10% or 0.1

If we think of x as the percentage investment in risky asset and 1-x as the investment in non risky asset we can mathematically find what proportion we need to invest in each asset to get this return.

16x+ 6(1-x)=10

16x+6-6x=10

10x=4

x=4/10

x= 0.4

This equation tells us that we should invest 40% in risky assets and 1-x which is 60% in treasury bills. We can test our answer by putting these values and see if the return is 10 %

(0.4*16)+(0.6*6)= Rate of return

Rate of return=10%

10% of 1000 = 100

100+1000=$1100

Explanation:

7 0
3 years ago
Choose an example of a type of new company you could start, and then use this company idea to answer the questions below. You mi
kupik [55]

Answer:

Find the explanation below.

Explanation:

1. The company I chose to operate would be Celebrity Hair Salon. The Celebrity Hair Salon is a standard salon with comfortable furnishings and state-of-the-art equipment intended to tend to the needs of celebrities. Clients are expected to make appointments for their services which the salon strictly adheres to.

2. I would prefer to fund this new business through debt financing. Debt funding entails borrowing funds from Creditors with the intention of paying back at a later time with the attached interest. Equity funding entails giving an investor a certain percentage of the company's returns thus making him a co-owner of the company. This affords him the right to make decisions for the business. Detaching the investor from this business is difficult because it requires buying him out.

I would prefer debt financing because I wish to retain sole ownership of the business. I can also go through some government agencies to obtain funds at lower interest rates. Moreso, there is a fixed debt repayment plan that I can set a target to meet until the debt is paid. Finally, I can regain my freedom after the payment is completed, thus regaining my business and not entitling me to anyone.

3 0
3 years ago
When a bank makes a loan:
nignag [31]

Answer:

C

Explanation:

this is the answer bc there is really no effect

4 0
3 years ago
Other questions:
  • Which one of the following statements is correct?
    10·1 answer
  • Primary data can usually be obtained more quickly and at a lower cost than secondary data.
    5·1 answer
  • On November 10 of the current year, Flores Mills sold carpet to a customer for $8,500 with credit terms 2/10, n/30. Flores uses
    8·1 answer
  • Which of the following is something you can do to protect yourself from being pinned?
    14·2 answers
  • Explain where on that financial statement you would find the debt information.
    11·1 answer
  • What factors can lead to the development of mixed economie?
    13·1 answer
  • Waterway Frame Camera Shop uses the lower-of-cost-or-net realizable value basis for its inventory. The following data are availa
    15·1 answer
  • As the operations manager for American Airlines you have decided to invest in 10 new jets for the company's fleet. There are thr
    7·1 answer
  • Beate Klingenberg manages a​ Poughkeepsie, New​ York, movie theater complex called Cinema 8. Each of the eight auditoriums plays
    15·1 answer
  • Wine and Roses, Inc. offers a 5.5 percent coupon bond with semiannual payments and a yield to maturity of 6.32 percent. The bond
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!