<span>the demand for motor oil would tend to be price inelastic.</span>
Answer:
The maquiladora industry has not created much employment in Mexico because most of the production is capital intensive
Explanation:
maquiladora industry in Mexico are company that allow industries to perform production by converting raw materials into finished product for exportation and for local use by making this industry a "Tax- free". or making them to have duty free. Examples of maquiladora industry are
Acer Peripherals, Bali Company, Inc.
and Bayer Corp./Medsep. It should be noted that The maquiladora industry has not created much employment in Mexico because most of the production is capital intensive.
Businesses can act ethically by being honest and fair
Question:
For an economy starting at potential output, a decrease in autonomous expenditure in the short-run results in a(n):
A. increase in potential output
B. recessionary output gap
C. decrease in potential output
D. expansionary output gap
Answer:
The correct answer is B
Explanation:
A decrease in autonomous expenditure shifts the Planned Aggregate Expenditure curve downward thus creating a lower equilibrium output.
PAE = C + Ip + G + NX
where
PAE = Planned Aggregate Expenditure
C = consumption
Ip = Investment Spending
G = Government Spending
NX = Net Export
If an economy has its output equal to its potential, this will create a reduction in short-run equilibrium output leading to a recessionary output gap.
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Answer:
A) has no effect on the cash payments for interest reported in the operating activities section of the statement of cash flows
Explanation:
The amortization is an accounting method to match the difference in the nominal interest rate of bonds with the real interest rate the bond is yielding.
Th cash flow statment will just recognize the cash proceeds, which are calculate base on the face value, regardless of the premium or discount in the bond.
