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Irina18 [472]
4 years ago
11

Describe at least two negative outcomes of having too much money and credit in the economy

Business
1 answer:
Eva8 [605]4 years ago
8 0
1. a.) It would cause a devaluation of currency, and b.) leads to inflation of market prices, usually without equal inflation in wages. 

<span>2. a.) It would cause a scarcity of currency, leading to rapid deflation and b.) overproduction of goods means major markets would plummet in value, outbalancing demand, leading to major losses for the producers. </span>

<span>As you can see, both scenarios can lead to recession or depression. Small fluctuations are normal or even sought after, but too far in either direction leads to bad things.</span>
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A company has provided the following data: Picture If the dollar contribution margin per unit is increased by 10%, total fixed c
shtirl [24]

Answer:

The net operating income increases by $11,000.

Explanation:

Data provided

Sales 3,000 units

Sales Price $70 per unit

Variable Cost $50 per unit

Fixed Cost $25,000

We can calculate the contribution margin as:

Contribution margin = sales price - variable cost = (70-50) = 20

The net operating income can be defined as:

NOI=cm*q-FC=(p-vc)*q-FC\\\\NOI=(70-50)*3,000-25,000=20*3,000-25,000=60,000-25,000\\\\NOI=35,000

According to the changes proposed in the problem

Contribution margin  = 20 * (1+0.1) = 22

Fixed cost = 25,000 * (1-0.2) = 20,000

The new net operating income is:

NOI=cm*q-FC=(p-vc)*q-FC\\\\NOI=22*3,000-20,000=66,000-20,000=46,000

Then

NOI'-NOI=46,000-35,000=11,000

With these changes, the net operating income increases by $11,000.

4 0
4 years ago
When creating video marketing content on a budget, what is the first thing you should consider doing?
ozzi

Answer:Shooting as much as you can and culling it later

Explanation:

4 0
3 years ago
Write a report on a trend in business that you’ve observed, and highlight at least the main finding. For example, from the risin
Reika [66]

Answer:

Over the last two years, small businesses have taken to the electronic space as a means of expanding their businesses.

This e-commerce trend experienced an upward spike during the C-19 Pandemic. As businesses were forced to operate remotely, necessity which is the mother of invention, started to thinking of ways to restructure their businesses to operate more electronically using a wide array of online tools and technology.

In a recent survey, 10 out of 50 businesses said they were not reverting back to their former model of operations as they had realised that it was completely unnecessary.

Top reasons given are:

  1. Given the shedding of operation load and streamlining to basic functions whilst retaining the quality of product and or service, they also shed a lot of costs which increased their bottomline;
  2. emote service deliveries enabled them to get into more territories that they couldn't access prior to the C-19 pandemic. Thus leading to an expansion of clientele/market share.

7 0
3 years ago
Account balance of 1723.57 the interest rate of the account is 3.4% compounded daily. If the account was opened 9 years ago, wha
hjlf

Answer:

The value of the initial deposit = $1269

Explanation:

Given - Account balance of 1723.57 the interest rate of the account is 3.4% compounded daily.

To find - If the account was opened 9 years ago, what was the value of the initial deposit

Proof -

We know that,

If the interest rate is compounded n times per year at an annual rate r, the present value of a A dollars payable t years from now is:

P = A(1 + \frac{r}{n} )^{-nt}

Here,

A = 1723.57

r = 3.4% = 0.034

n = 365 (because it is compounded daily )

t = 9

So,

we get

P = 1723.57(1 + \frac{0.034}{365} )^{-365(9)}

   = 1723.57(1.000093151)⁻³²⁸⁵

   = 1723.57(0.736396351)

   = 1269.23066 ≈ $1269

∴ we get

The value of the initial deposit = $1269

5 0
3 years ago
Lie Around Furniture manufactures two​ products: Couches and Beds. The following data are​ available: Couches BedsSales price $5
Luba_88 [7]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

7 0
4 years ago
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