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Fed [463]
3 years ago
15

Which of these effects of expansionary spending would a government most want to avoid?

Business
1 answer:
lina2011 [118]3 years ago
5 0

Answer: B.) Higher inflation on Ed2020

Explanation:

higher inflation growth in production growth in consumer spending.

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Suppose Sam would like to use $6,000 of his savings to make a financial investment. One way of making a financial investment is
grin007 [14]

Answer:

The correct options are option C and Option D.

Explanation:

Lets look at each option in turn and evaluate whether they are correct or incorrect

Option A: Incorrect. This can be understood by thinking in terms of the classic demand and supply of a given item. If the company issues more shares, there will be a greater amount of shares in the market for a potential investor to buy. This additional supply of shares will put a downward pressure on the price of the shares which will cause the share price to decrease.

Option B: Incorrect. When a company issues shares to raise money, it is known as equity finance. By doing so, the company is increasing its capital which is recorded in the balance sheet under the heading of "share capital". Another statement that will be impacted is the cash flow statement under the heading of cash flow from financing activity. The income statement will not be impacted. If Sam purchases shares from another investor, the company's statements will not be impacted.

Option C: Correct. Expectations of a recession that reduce corporate profits for make investors expect a lower return on investment if they invest in a corporation's shares. This will dampen the demand, thereby decreasing the price.

Option D: Correct. An investor measures the opportunity cost of an investment by generally comparing it to the risk free return that they can get on US bonds. So the investor can alternatively invest in US govt instruments.

Option E: Incorrect. A bond maturing 30 years from now will carry a DIFFERENT interest rate due to the varying tenor. The tenor of a bond affects the risk profile of an investment in the bond which makes bonds of differing maturities offer different returns in line with expectations concerning economic performance.

7 0
3 years ago
Alalahanin at gawin, hakbang sa pag sulat Ng akademikong sulatin​
maria [59]
Sorry I don’t speak Italian
6 0
3 years ago
The cookie company in the mall hires only labor to produce cookies. The workers are paid $75 per day, and the cost of renting th
Margarita [4]

Answer:

The daily fixed costs of production are labor and rent for a total amount of $375.

Explanation:

Fixed costs are costs that doesn't change when quantity increases or decreases. Production costs are the costs a business has to produce a good. According to this, the fixed costs of production include labor to produce cookies and the rent of the space in the mall.

3 0
3 years ago
If some activity creates external benefits as well as private benefits, then economic theory suggests that the activity ought to
svetlana [45]
The answer is subsidized
3 0
2 years ago
Tee Time Golf Resort plans to use famous Kauri wood from New Zealand for parts of the interior of the magnificent clubhouse at i
Crazy boy [7]

Tee Time Golf Resort plans to use famous Kauri wood from New Zealand for parts of the interior of the magnificent clubhouse at its new golf resort near Salem, OR. According to the importer, each 10-foot slab will cost Tee Time approximately $5,000. Looking at the exchange rates, Tee Time's finance director noted that $500 US dollars are equal to $738 NZ dollars.

<h3>What do you mean by exchange rates?</h3>
  • The rate at which one currency will be exchanged for another is known as the exchange rate in the world of finance.
  • Most often, currencies are national ones, but they can also be supra-national ones like the euro or sub-national ones like Hong Kong.
  • The value of one country's currency in respect to another currency is also thought of as the exchange rate.
<h3>What is Tee?</h3>
  • In sports, a tee is a platform that is used to raise and hold a stationary ball before being struck with a foot, club, or bat.
  • Tees are often used in sports including rugby, baseball, American football, tee-ball, golf, and baseball.
  • The word "tee" is related to the "house" (the colored circles) in curling and comes from the Scottish Gaelic word "taigh," which means "house."

Learn more about exchange rates here:

brainly.com/question/22996931

#SPJ4

7 0
2 years ago
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