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Masja [62]
3 years ago
14

Automatic stabilizers refer to:

Business
1 answer:
Aliun [14]3 years ago
4 0

Answer:

B) government spending and taxes that automatically increase or decrease along with the business cycle.

Explanation:

The two most common automatic stabilizers are: income taxes and unemployment benefits.

When the economy is strong, people make more money, and income tax revenue automatically increases.

On the contrary, when the economy is weak, or in recession, people earn less, and more of them are unemployed. Unemployment benefits therefore increase accordingly.

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Qualities like hope or friendly service are examples of which of the following?
irina [24]

Answer:

unique selling propositions

7 0
4 years ago
Read 2 more answers
The purchasing power of money and the price level vary: Group of answer choices inversely. directly during recessions, but inver
Kamila [148]

Answer:

Option "Inversely" is correct.

Explanation:

Option “Inversely” is correct because the increase in price level exhibits inflation and a rise in inflation decreases the purchasing power of money. However, if the price level decreases or inflation decreases, then the purchasing power of money increases. Therefore we can see that increase in price level decreases the purchasing power and a decrease in price level increases the purchasing power. Therefore, there is an inverse relationship.

5 0
4 years ago
Granfield Company has a piece of manufacturing equipment with a book value of $36,000 and a remaining useful life of four years.
erastovalidia [21]

Answer:

Effect on income= -$18,000

Explanation:

Giving the following information:

Granfield Company has a piece of manufacturing equipment with a book value of $36,000 and a remaining useful life of four years. At the end of the four years, the equipment will have a zero salvage value. The market value of the equipment is currently $21,200. Granfield can purchase a new machine for $112,000 and receive $21,200 in return for trading in its old machine. The new machine will reduce variable manufacturing costs by $18,200 per year over the four-year life of the new machine.

Year 0= -112,000 + 21,200= -90,800

Year 1 to 4= 18,200*4= 72,800

Effect on income= -90,800 + 72,800= -18,000

7 0
3 years ago
describe how adding a risk-free security to modern portfolio theory allows investors to do better than the efficient frontier. A
kondaur [170]

Answer: Modern portfolio theory takes this idea even further. It suggests that combining a stock portfolio that sits on the efficient frontier with a risk-free asset, the purchase of which is funded by borrowing, can actually increase returns beyond the efficient frontier.

Risk premium is defined as excess return over risk free rate by taking extra risk. A risk-free asset has zero risk, so risk premium on these assets is zero. As risk level of investment increases, risk premium on investment also increases.

The market risk premium is the difference between the expected return on a market portfolio and the risk-free rate. The market risk premium is equal to the slope of the security market line (SML), a graphical representation of the capital asset pricing model (CAPM). CAPM measures required rate of return on equity investments, and it is an important element of modern portfolio theory and discounted cash flow valuation.

Explanation:

7 0
3 years ago
In silicon valley, california, it is not unusual for highly skilled employees to stay at one company for about three years. thes
Anuta_ua [19.1K]

Answer:

Type A

Explanation:

William Ouchi developed the Japanese management Theory Z which served as a reference for understanding the great economic boom in Asian countries.

Type A organizations focus on individual performance and accountability, they generally rely on short term evaluation periods and rapid promotions of high achievers and encourages personal efficiency.

5 0
3 years ago
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