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VMariaS [17]
3 years ago
10

The fundamental relationship between savings and investment spending in an economy is that: A. savings will increase as investme

nt spending decreases. B. investment spending and savings are always equal. C. investment spending promises higher financial returns than savings. D. savings will decrease as investment spending increases.
Business
1 answer:
Romashka-Z-Leto [24]3 years ago
8 0

The correct option is B

<u>Explanation:</u>

In an economy, planned investment spending is always equal to planned saving. If actual saving falls short of (exceeds) planned saving, then actual investment falls short of (exceeds) planned investment.

That is the other part of the saving paradox. If an economy produces too much, such that saving is greater than planned investment, inventory will build up, giving signal to producers to reduce output, to restore equilibrium. Such investment scheme is suitable only to communist countries. Keynes has another investment theory in his liquidity story. But investment theories are equally a posterior.

Therefore, Option B is correct

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kykrilka [37]
Which describes the cross section of the rectangular prism that passes through vertices A, B, C, and D?

(A rectangular prism with measurements 3 centimeters, 10 centimeters, 6 centimeters.)

a rectangle with two 10-cm sides and two 6-cm sides
a rectangle with two 10-cm sides and two sides that are longer than 6 cm
a nonrectangular parallelogram with two 10-cm sides and two 6-cm sides
a nonrectangular parallelogram with two 10-cm sides and two sides that are longer than 6 cm
5 0
3 years ago
Blossom Corp. will pay dividends of $5.00, $6.25, $4.75, and $3.00 in the next four years. Thereafter, management expects the di
Shkiper50 [21]

Answer:

Present value = $35.00326585 rounded off to $35.00

Explanation:

Using the dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the present value of the stock, we will use the following formula,

Present value = D1 / (1+r)  +  D2 / (1+r)^2  +  ...  +  Dn / (1+r)^n  +

[(Dn * (1+g)  /  (r - g))  /  (1+r)^n]

Where,

  • r is the required rate of return
  • g is the constant growth rate in dividends
  • n is the number of years

Present value = 5 / (1+0.155)  +  6.25 / (1+0.155)^2  + 4.75 / (1+0.155)^3  +  

3 / (1+0.155)^4  +  [(3 * (1+0.07)  /  (0.155 - 0.07))  /   (1+0.155)^4]

Present value = $35.00326585 rounded off to $35.00

3 0
3 years ago
Bob holds a portfolio of 20 stocks from different industries, whereas Sharon holds only one stock in her portfolio. Assuming the
nikdorinn [45]

Answer:

The correct answer is: C. larger decrease in total risk.

Explanation:

The risk of an investment portfolio refers to the possibilities of obtaining the return, profit or profit you expect. Every investment involves a risk, and the more you can earn, the greater the risk. If you put your money on a fixed term, the risk is minimal, but it hardly gives you an interest even less than inflation. If you invest in the forex market, for example, you can earn a lot of money, but also the risk (that you do not achieve and even that you lose what you invested) is much greater. Every investor knows that he must assume some risk, because it is something inherent in the investment.

5 0
3 years ago
"The legislation that requires a broker-dealer's research analysts to be completely separated from that firm's investment bankin
bogdanovich [222]

Answer:

Sarbanes-Oxley Act of 2002.

Explanation:

Sarbanes-Oxley Act of 2002 is a legal framework which was passed by the 107th U.S Congress on the 30th of July, 2002. The law required that investment banking be completely made rid of research analysts who works at a broker-dealer firms, so that the analysts are not influenced to write favorable reports to enhance their potential investment banking businesses.

Hence, the legislation that requires a broker-dealer's research analysts to be completely separated from that firm's investment banking department is the Sarbanes-Oxley Act of 2002.

<em>It is a law that imposes a stiffer penalty for any securities related law break offence by the accountants, auditors etc by mandating strict reforms to the existing securities regulations. </em>

6 0
3 years ago
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sashaice [31]

Answer:

1- Health

2- Essential

3- Warm feelings and reader benefits.

Explanation:

Build interest in your sales message by developing your central selling points with rational, emotional, or dual appeals. Rational appeals are appropriate when a product is, for example, important to <u>health</u><u>.</u> Emotional appeals are appropriate when a product is, for example,<u> essential</u> . Whether using rational or emotional appeals, remember to translate cold facts into <u>warm feelings and reader benefits</u>.

For an effective marketing message, it is necessary that rational, emotional or double appeals are correctly directed to the rational and irrational thoughts that the products arouse in the consumer.

For a health product, there must be a rational appeal, as the information contained in the sales message must be real, detailed and secure.

For an essential product, it is important that there is an emotional appeal to create feelings and expectations in the customer that make him want to obtain such a product.

Whether using rational or emotional appeals, remember to translate cold facts into warm feelings and reader benefits.

<em />

<em />

4 0
3 years ago
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