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3 years ago

"as the interest rate decreases the planned aggregate expenditure curve shifts downward"

Business

1 answer:

Soloha48 [4]3 years ago

3 0

Answer:FALSE

Explanation: Aggregate expenditure is the total amount of goods and services rendered and paid for by both the Government or private individuals,it can also be described as the current market value of all the finished products( goods and services) in an Economy.

As the interest rate reduces the more people will be ready to make expenditures which will cause the aggregate expenditure curve to shift UPWARD. CONSUMPTION, INCOME, GOVERNMENT EXPENDITURE, NET EXPORT AND INVESTMENT are components of aggregate expenditure.

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Kim is thinking of organizing a fundraiser to support a local charity. She has planned to rent a banquet hall and provide the gu

mina [271]

Answer:

It would need 549 guests to break even.

Explanation:

The first step will be know the Contribution Margin:

$Sales \:Revenue - Variable\: Cost = Contribution \:Margin$

Variable Cost

Food 120

Other 8

Total 128

Next we do the Contribution Margin, which represent how much cash each guest generates to pay the fixed cost

500- 128 = 372

Then we Calculate the total fixed cost we need to pay

Rental 150,000

Advertising 50,000

Entertainment 4,000

Total 204,000

Now we calculate the Break Even Point in units (for this case, in guests)

$\frac{Fixed\:Cost}{Contribution\: Margin} = Break \: Even \: Point_{guests}$

$\frac{204,000}{372} = 548.34$

It would need 549 guests to break even.

4 0

3 years ago

The following information relates to next year's projected operating results of the Children's Division of Grunge Clothing Corpo

Komok [63]

Answer:

The annual financial disadvantage of eliminating the division is $30,000.

Explanation:

contribution margin = revenue - variable costs = $200,000

fixed expenses = $500,000

net loss = $300,000.

If the division is eliminated, only $170,000 of the fixed expenses can be avoided, therefore the company's fixed expenses will remain at $330,000.

Therefore, eliminating the children's division will result in a $30,000 (= $330,000 - $300,000) decrease in net income.

4 0

3 years ago

All of the following would cause a shift in the aggregate supply curve except:________.

Helga [31]

Answer: a change in the price level.

Explanation:

A shift in the aggregate supply curve is caused by non-price changes such as real wages of the workers, tax, technological innovation, productivity level etc.

The change in price will only result in the movement along the supply curve, which is also referred to as the change in quantity supplied. A change in price will not cause a shift on the aggregate supply curve.

Therefore, option A is the correct answer.

6 0

4 years ago

What are the shops called that are in the middle of the mall?

Kobotan [32]

Those shops which are located in the mid of the mall and operated from there are called as Mall Koisk.

3 0

3 years ago

The super prize in a contest is $10 million. This prize will be paid out in equal yearly payments over the next 20 years. If the

Angelina_Jolie [31]

Answer:

contest sponsors have to deposit $6795163.17 in the escrow account

Explanation:

given data

amount = $10 million

time = 20 year

rate = 4 %

to find out

how much do the contest sponsors have to deposit in the escrow account

solution

we know Cash flow per period = 10000000/20 = $500000

we will apply here future value formula to find amount

future value = cash flow × $\frac{1-(1+r)^{-t}}{r}$

here r is rate and t is time

put here value

future value = 500000 × $\frac{1-(1+0.04)^{-20}}{0.04}$

future value = 6795163.1724

so contest sponsors have to deposit $6795163.17 in the escrow account

4 0

4 years ago