Answer:
Explanation:
The multiplier is calculated by two marginal decisions by firms and individuals. A firm can decide whether to save the revenue or to consume it, therefore there is marginal propensity to consume and marginal propensity to save as options for both firms and individuals. Therefore, the size of the multiplier which is applied to a change in AD is dependent upon size of the marginal propensity to consume and marginal propensity to save.
Answer:
when there is an entry of a substitute product in the market. This is the right time that customers attention need to be fully caught. When there is a general decline in the sell of the product. Advertisement is necessary.
Explanation:
Answer:
high degree of social stratification
Explanation:
"Individualism" refers to<em> a political philosophy that centers on the worth or importance of an individual rather than the society as a whole.</em>
When it comes to the Western societies, such as <em>the USA</em>, competitive individualism characterizes the structure of their social organization. This results to <u>a high degree of social stratification.</u> This means that people are ranked or grouped according to their power or wealth and classes or ranking. These people in the upper classes have a greater access to many resources compared to those in the lower classes. They believe that people in the upper classes or ranks achieve such economic success because of their diligence and hard work.
Answer:
The risk free rate (Rf) is 28,2%
Explanation:
We will substituting the portfolio expected return (Er) and the betas of the portfolio in the expected return & beta relationship, that is:
E[r] = Rf + Beta * (Risk Premium)
On doing this we get 2 equations in which the risk free rate (Rf) and the risk premium [P] are not known to use:
12% = Rf + 1 * (P - Rf)
9% = Rf + 1.2 * (P - Rf)
On solving first equation (of Portfolio A) for P(risk premium), we get:
12% = Rf + 1 * (P - Rf)
12% = Rf + P - Rf
(Rf and Rf cancels each other)
P = 12%
Now, on using the value of P in second equation (of Portfolio B), and solving for Rf (risk free rate), we get:
9% = Rf + 1.2 * (12.2% - Rf)
9% = Rf + 14.64% -1.2Rf
1.2Rf - Rf = 14.64% - 9%
0.2Rf = 5,64%
Rf = 5.64% / 0.2
Rf = 28,2%
So, the risk free rate (Rf) is 28,2%
Answer:
The classical approach
Explanation:
The Wells Fargo case clearly depicts the 'Classical Approach' theory.
As you know that the classical approach theory focuses on the efficiency, the output and the productivity of the employees, while leaving behind the focus on the employee job satisfaction and social needs.
This is exactly how Wells Fargo was operating by only focusing on the market capitalization, profit maximizing and ignoring all the employee and customer values and ethical practices.
