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4 years ago

If actual output exceeds potential output for a prolonged period of time, we would eventually expect factor prices to:

Business

1 answer:

Andru [333]4 years ago

7 0

Answer:

The correct answer is option A.

Explanation:

The potential output represents the full employment level of output. If the actual output is greater than the potential output level for a long time, it implies that the economy is experiencing inflation.

In the case of inflation, the general price level rises, so the factor prices will rise as well. This increase in factor prices will further increase the cost of production.

This increase in the cost of production will consequently cause the supply to decrease shifting the SAS or short-run aggregate supply curve to the left.

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FVA Inc.’s net income for the most recent year was $40,825. The tax rate was 24 percent. The firm paid $10,320 in total interest

AlexFokin [52]

Answer: 7.23 times

Explanation:

Cash coverage ratio = Cash available/ Interest expense

Cash Available = Net Income before tax + Interest expense + Depreciation

= (40,825 / (1 - 24%)) + 10,320 + 10,570

= $74,607.11

Cash coverage ratio = 74,607.11/10,320

= 7.23 times

8 0

3 years ago

$ 15 billion in small minus denomination time deposits$15 billion in small−denomination time deposits is counted in A. Upper M 2

Rom4ik [11]

Answer:

Only M2

Explanation:

M1 is composed by currency, coins, checking accounts, traveler check and others forms of cash

While M2 correspond to M1 + near cash which are time deposits, saving account and other form like that

Hence, 15 billion in time deposits will be a near cash thus, M2 only

5 0

3 years ago

. Suppose you filed your taxes and received a small refund from the IRS. What would have been the impact on the refund amount if

Andrew [12]

Letter A is the right answer

3 0

4 years ago

A company had the following purchases and sales during its first year of operations: Purchases Sales January: 10 units at $120 6

Vesna [10]

Answer:

$3540.

Explanation:

FIFO means first in, first out. It means that it is the first purchased inventory that is the first to be sold

Ending inventory comprises of goods bought in May, September and November

cost of the ending inventory :

(4 x $130) + (12 x $135) + (10 x$140) = $3540

6 0

3 years ago

Laurel, Inc., and Hardy Corp. both have 8 percent coupon bonds outstanding, with semiannual interest payments, and both are curr

vredina [299]

Answer:

Laurel bond will decrease by 7.72%

Hardy bond will decrease by 15.8%

Explanation:

current bond price $1,000

interest rate 8%

Laurel bond matures in 5 years, 10 semiannual payments

Hardy bonds matures in 16 years, 32 semiannual payments

if market interest increases to 10%

Laurel bond:

$1,000 / (1 + 5%)¹⁰ = $613.91

$40 x 7.7217 (annuity factor, 5%, 10 periods) = $308.87

market price = $922.78

% change = -7.72%

Hardy bond:

$1,000 / (1 + 5%)³² = $209.87

$40 x 15.80268 (annuity factor, 5%, 32 periods) = $632.11

market price = $841.98

% change = -15.8%

4 0

4 years ago