I will buy stock during bear market because bear markets give opportunity to buy stocks that are on low price.
Explanation:
A bear market is when the prices fall always. An investor usually purchases the stock at a low price later when the prices goes up he sells and earn a huge profit. 'Buy low, sell High' principle is followed.
A bull market follows a bear market. There is more profit opportunity in a bear market.The rewards are potentially greater if we decided to buy stock in bear market.
Answer:
Change in G = $90 billion
Explanation:
Data provided in the question:
Shift in demand curve, ΔY = $300 billion
Marginal propensity to consume (MPC) = 0.7
Now,
Government spending multiplier
⇒ ΔY ÷ ΔG = 1 ÷ ( 1 - MPC )
or
⇒ $300 billion ÷ ( Change in G ) = 1 ÷ ( 1 - 0.7 )
or
Change in G = $300 billion × ( 1 - 0.7 )
or
Change in G = $300 billion × 0.3
or
Change in G = $90 billion
Answer:
the firm will become more reasky as their Weighted-average cost-of-capital will change over time based on market condition but the management wil take project based on obsolete information
Thus, the WACC of the company will increase without the management notice this because, lender will use higher rate to make up for the change of failling Also, the shares wil trade at a lower value as is not maximizing the value of the firm.
Explanation:
Answer:
a. The correct option is that U.S. manufacturers can possibly compete if U.S. workers are more productive.
b. The correct option is that all manufacturing is not done in Mexico and other low-wage countries because of trade barriers.
Explanation:
a. U.S. manufacturers can possibly compete if
A worker or labor is said to be more productive if it produces or able to produce larger amounts of goods than the other workers or labors.
If the U.S. workers are more productive than the workers in Mexico, the labor cost per unit of goods produced in the US will be lower than the labor cost per unit of goods in Mexico.
Therefore, the correct option is that U.S. manufacturers can possibly compete if U.S. workers are more productive.
b. All manufacturing is not done in Mexico and other low-wage countries because
Trade barriers are restrictions on international trade imposed by the government.
When a country imposes trade barriers, some goods will not be imported into that country even if they are cheaper in terms of average compensation per hour for manufacturing workers than the locally produced goods. As a result, some of the goods have to be manufactured in the country where average compensation per hour for manufacturing workers is the highest.
Therefore, the correct option is that all manufacturing is not done in Mexico and other low-wage countries because of trade barriers.