Answer:
1. The Fed uses open market operations to increase the money supply, thus lowering interest rates and stimulating investment.
Expansionary monetary policy is done to stimulate economy by increasing money supply. It lowers interest rates and leaves more money for consumption and investment.
2. Increased aggregate demand leads to some higher prices and more total output.
Increased AG will lead to prices being higher in response. This would spur producers to produce more thereby increasing output.
3. Sticky input prices adjust to inflation.
Input prices will rise overtime to match the increase in prices.
4. Producers lay off some workers in response to higher input prices, causing a decrease in aggregate supply.
When the inputs rise, production becomes more expensive so producers will have to lay off workers to maintain profitability. They will also supply less goods as a result.
5. In the long run, equilibrium returns to the same initial production level.
In the long run therefore, the reduction in AS leads to production returning to pre-monetary policy figures.
Answer:
Option (D) is correct.
Explanation:
Expected Revenue = 30 Customers × 4 hours each × $31 per hour.
= $3,720
Actual Revenue = 40 Customers × 3.5 hours each × $31 per hour.
= $4,340
Increased Revenue = $4,340 - $3,720
= $620
Therefore, Cali's revenues for the month were 620 more than expected.
Answer:
$55.72
Explanation:
Data provided:
Quarterly dividend paid per share = $2.20
Closing share cost = $57.70 per share
Relevant tax rate = 10%
The dividend per share after the tax deduction
= (100% - 10%) × Quarterly dividend paid per share
= 0.9 × $2.20
= $1.98
Thus, the ex-dividend stock price
= Closing share cost - dividend per share after the tax deduction
= $57.70 - $1.98
= $55.72
Answer:
The correct answer is B. 7.143 %.
Explanation:
Return on assets is a profitability ratio that provides how much profit a company is able to generate from its assets. In other words, return on assets (ROA) measures how efficient a company's management is in generating earnings from their economic resources or assets on their balance sheet. ROA is shown as a percentage, and the higher the number, the more efficient a company's management is at managing its balance sheet to generate income.
The formula to calculate it is given below.
ROA = Net Income/Average total asset * 100
= 450,000/ 6,300,000*
= 7.14 %
*= (6,000,000 + 6,300,000)/2
Answer:
External factors like the economy, politics, competitors, customers, and even the weather and internal factors such as staff, company culture, processes, and finances can influence an organization's Strategic Plan.
Explanation:
- The vertical and horizontal external business environment is composed of economic, political and legal, demographic, social, competitive, global, and technological factors while the organization's culture, product development, mission and strategy are all part of the internal institutional, resource-dependent, and contingent environments.
- Vertical and horizontal external environments are generally beyond the control of management and change constantly compared to internal institutional, resource-dependent, and contingent environments that managers have a great deal of control over.
A health leader operating in these environments can leverage on continuous study on how to adapt to the external business environment to ensure success