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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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Under corporate law, corporations are given the same rights as
Ilia_Sergeevich [38]

Answer:

C. individuals

Explanation:

The law treats corporates organizations as legal citizens. It gives them commercial right to own property, enter into contracts, and incur debts. Corporates have tax obligations, just like individuals. They can sue and be sued.

The law considers a corporate as a separate entity from its owners. It distinguishes the assets and liabilities of the institutions as different from those of its founders. A corporate has an infinite life. The death of its shareholders does not automatically mean its termination.

7 0
3 years ago
"three workers complete a full 8-hour day finishing concrete for a terrace. all three workers are paid $12 an hour and the job b
kati45 [8]
Direct labor cost is wages that are incurred in order to produce specific goods or provide specific services to customers. The total amount of direct labor cost is much more than wages paid.
Given that 3 workers, working 8 hours in a day are paid $12. The total amount paid to workers are:
12x8x3=$288
The cost of direct labor will therefore be:
450-288
=$192
8 0
3 years ago
Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years because t
Montano1993 [528]

Answer:

$106.02

Explanation:

Div₀ - Div₉ = 0

Div₁₀ = $10 and then will grow by 6% forever

we must first determine the terminal value for year 9 using the dividend growth model:

P₉ = Div₁₀ / (Re - g) = $10 / (10% - 6%) = $10 / 4% = $250

now we shall discount this to present day value:

P₀ = $250 / (1 + 10%)⁹ = $250 / 2.3579 = $106.02

3 0
3 years ago
MARKING BRAINIEST
Luba_88 [7]

Answer:

Sales

Explanation:

S stands for sales. The moving averages formula uses sales figures from the previous periods to forecasts future sales.  For example,

say, sales for 2015 were 100; 2016 were 120; 2017 were 110; and 2018,..130. Using the formula, the forecast for 2019 will be

Forecast 2019 = Sales 2015 + Sales 2016+ Sales 2017+ sales 2019 / 4

Forecast 2019 = 100 + 120 +110 + 130 / 4

Forecast 2019=115

8 0
3 years ago
Read 2 more answers
If a country's nominal interest rate is zero, then Group of answer choices the country's economy is in a liquidity trap. monetar
Flura [38]

Answer:

the country's economy is in a liquidity trap.

Explanation:

A liquidity trap exists when interest rate are  close to or equal to zero.

When there is a liquidity trap, expansionary monetary supply would not work because people would prefer to hold cash due to the believe that a negative economic event is about to occur e.g. deflation

When there is a liquidity trap, individuals prefer to save their monies rather than buy bonds

Liquidity trap was first discovered by John M. Keynes

Solutions to liquidity trap

1. Policies that would make savings less attractive

2, Increased government spending

Liquidity trap occurred in Japan in the 1990s and this led to a deflation

6 0
2 years ago
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