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lorasvet [3.4K]
3 years ago
15

In the​ 1980s, the saving rate in Japan was extremely high. The saving rate ranged between 30 percent and 32 percent.Since savin

g leads to​ investment, is a very high saving rate always good for the​ economy?  A.Yes, because a high saving rate allows the economy to invest in more physical​ capital, which increases income more than a low saving rate would.B.No, a high saving rate cannot lead to sustained economic growth because depreciation always drags aggregate output back​ down, forcing the economy to spend some of its income on investment.C.No, a high saving rate cannot lead to sustained economic growth because there is a maximum amount of aggregate income that an economy can achieve by increasing​ saving, since the economy can never exceed a saving rate of 100 percent.D.Yes, because a high saving rate increases income more than a low saving​ rate, which allows the people to consume more.
Business
1 answer:
Alekssandra [29.7K]3 years ago
3 0

Answer:

C) No, a high saving rate cannot lead to sustained economic growth because there is a maximum amount of aggregate income that an economy can achieve by increasing​ saving, since the economy can never exceed a saving rate of 100 percent.

Explanation:

A high savings rate is very useful because the money that is not used to consume goods today, can be used for investment which will yield interests that increase the consumption of goods in the future. The problem is that exactly as too much consumption and little savings is bad, too much savings and too few consumption is also bad. The largest component of a country's GDP is usually private consumption which allows the economy to grow. There is a limit to how much money can be saved in a country, since too much saving will decrease current economic growth.

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The Monteleone Company pays large fees to a highly-recognizable, prestigious individual to be the spokesperson for the company’s
xxMikexx [17]

Answer: (C) Differentiation strategy        

 

Explanation:

The differentiation strategy is one of the type of business strategical approach that helps in developing the various types of distinctive products and the services in the market.

The main objective of the differentiation strategy is to attract the consumers or customers by offering them some different and effective products in the competitive market.  

 According to the given question, the Monteleone company is basically paying the high fees for the purpose of promoting the luxuries and the products in the market.

 Therefore, the Monteleone company is basically following the differentiation strategy.    

7 0
4 years ago
Both Bond Bill and Bond Ted have 12.4 percent coupons, make semiannual payments, and are priced at par value. Bond Bill has 5 ye
zzz [600]

The bond value computed shows that the percentage change in the price of Bill's bond is -10.20%.

<h3>How to calculate the percentage</h3>

From the information given, the following can be deduced:

Nper = 10

PMT(semi annual payment) = 1000 × 12.4% × 0.5 = 62

FV (face value) = 1000

Rate = (12.4 + 3)/2 = 7.7%

New bond value = PV(7.7%, 10.62, 1000) = $897.97

Therefore, the percentage change will be:

= (897.97 - 1000)/1000

= -10.20%.

Learn more about percentages on:

brainly.com/question/24304697

7 0
2 years ago
On june 1, aaron company purchased equipment at a cost of $120,000 that has a depreciable cost of $90,000 and an estimated usefu
Leto [7]
The partial year of service is from Januarry to May.

Thus, using straight line mathod, the <span>depreciation expense on the equipment for the year is given by:

\frac{5}{12} \left( \frac{90,000}{3} \right)= \frac{5}{12} (30,000)=\$12,500</span>
8 0
3 years ago
Indicate whether the following statements about the conceptual framework are true or false. (a) The fundamental qualitative char
Novosadov [1.4K]

Answer:

True or False Statements about the conceptual framework:

(a) False: The fundamental qualitative characteristics that make accounting information useful are relevance and faithful representation, which suggest materiality and completeness respectively.

(b) False: Relevant information must also be material in a financial statement user's decision, in addition to having predictive and confirmatory values.

(c) False:  It is information that is relevant that is characterized as having predictive or confirmatory value, and not information that shows faithful representation.

(d) False: Comparability also refers to comparisons of a firm over time (which is appropriately described as consistency).  This is in addition to the similar reporting of information by different companies.

(e) False: Enhancing characteristics do not relate only to faithful representation but also to relevance.

(f) True.

Explanation:

Faithful representation implies completeness.  Relevance means that the disclosure will attract important consideration and is material to the matter.  Therefore, users of financial reports base their decisions on relevant information and not irrelevant details.

6 0
3 years ago
Define rent seeking. Rent seeking is attempting to transfer surplus from one group to another, for firms it usually involves: re
murzikaleks [220]

Answer:

For firms, Rent Seeking usually involves: <u>restricting supply in order to increase price</u>

Explanation:

An example of rent-seeking in a modern economy is spending money on lobbying for government subsidies in order to be given wealth that has already been created, or to impose regulations on competitors, in order to increase market share.

A rent seeking firm have a greater incentive to engage in rent-seeking behavior when demand is elastic because the restriction imposed on competitors will not affect the demand for the goods.

6 0
4 years ago
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