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KatRina [158]
3 years ago
12

Suppose the economy is in long-run equilibrium. In a short span of time, there is a decline in the money supply, a tax increase,

a pessimistic revision of expectations about future business conditions, and a rise in the value of the dollar. In the short run, what would we expect to happen?
Business
1 answer:
Mkey [24]3 years ago
8 0

Answer:

The price level and GDP will fall.

Explanation:

A decline in money supply will increase the interest rate, as a result the investment will decline. This will cause production to decrease. An increase in tax will cause the cost of production to increase, reducing the supply. The taxes will decrease the disposable income, further reduing demand and cnsumption. A pessimistic expectation of business will also cause production to decline.

A rise in the value of dollars will make exports expensive, reducing exports. All of this will cause the GDP and price level to decline.

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Khadimally, Incorporated, expects sales of $763,500 next year. The net profit margin is 5.3 percent and the firm has a dividend
Nutka1998 [239]

Based on the expected sales, net profit margin, and dividend payout ratio, the projected increase in retained earnings for Khadimally Inc, is $33,181.71.

<h3>What is the projected increase in retained earnings?</h3>

First find the expected profit:

= Sales x Net profit margin

= 763,500 x 5.3%

= $40,465.50

The projected increase is:

= 40,465.50 x (1 - 18%)

= $33,181.71

Find out more on retained earnings at brainly.com/question/25998979.

3 0
2 years ago
The undergrounds coffee shop has total assets of $85,300 and an equity multiplier of 1.53. what is the debt-equity ratio?
ikadub [295]
Let us go to the basic accounting equation: Assets = Liabilities + Shareholder's Equity. The equity multiplier is computed by dividing the total assets with the total shareholders' equity. We know the total assets as $85,3000. Using the formula for the equity multiplier, we can calculate the amount of the shareholders' equity. The given equity multiplier is 1.53. To calculate the shareholders' equity, we just have to divide the $85,300 (total assets) with 1.53 (equity multiplier). We can get the amount of $55,752. Using the accounting equation, we can compute <span>the amount of liabilities as $29,548. The formula to get the debt-equity ratio is dividing the total shareholder's equity by the liabilities. $55,752 divided by $29,548, we can get 1.89 as the debt-equity ratio.</span>
4 0
3 years ago
Universal containers has a custom object that has a many-to-many relationship with opportunityLineItem carrying price and amount
Aloiza [94]

Answer:

The correct answer is

C) Master-Detail

good luck ❤

5 0
3 years ago
Suppose that consumer spending initially rises by $5 billion for every 1 percent rise in household wealth and that investment sp
enyata [817]

Answer:

left by 30 billons

then right by 40 billons

Explanation:

the aggregate demand curve will move to the left as the consumption of the economy will fall as the household are less wealthy than before.

Then, as the interest rate fall the aggregate demand curve will move to the right as the investing increase as now more projects are profitable.

<em>Calculations:</em>

<em />

5 billon for every point of wealth:

6 points x 5 billon = 30 billons

20 billion of inventing per 1% of interest rate decrease

2 points x 20 billions = 40 billons

7 0
3 years ago
Which of the following acquisitions would be considered the LEAST related? Group of answer choices A candy manufacturer purchase
kari74 [83]

Answer:

An upscale "white-tablecloth" restaurant chain acquires a travel agency.

Explanation:

Few reasons:

  • Such restaurant are luxurious, so they would want to collaborate with travel agencies but not acquire the whole agency itself.
  • Being the upscale restaurant they have to work on their own image not acquiring unnecessary agencies.
  • They have their own customer market, who won't compromise on the choices they make, so they don't need to acquire a travel agency to increase it's branding as not everyone can afford such restaurants.
4 0
3 years ago
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