Answer:
If opportunity cost is 5%, PV=10,366.05
If opportunity cost is 6.5%, PV=9,934.19
If opportunity cost is 11.5%, PV=8,656.79
Explanation:
PV=Σ
If opportunity cost is 5%: PV =
=10,366.05
If opportunity cost is 6.5%: PV =
=9,934.19
If opportunity cost is 11.5%: PV =
=8,656.79
It is False When the housing market collapsed in 2007, the demand for loanable funds decreased and caused interest rates to decrease.
Because Interest rates typically decline during recessions as loan demand slows, bond prices rise and the central bank eases monetary policy. During recent recessions, the Federal Reserve has cut short-term rates and eased credit access for municipal and corporate borrowers. No price in the economy is as important as the price of money. Interest rates arguably drive the business cycle of expansion and contraction.
Interest rate is the amount a lender charges a borrower and is a percentage of the principal the amount loaned.
Recession is a period when the business and industry of a country is not successful.
Corporate is formed into an association and endowed by law with the rights and liabilities of an individual.
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Answer: Economies of scale
Explanation:
Economies of scale occurs when there is a reduction in cost as a result of an increase in production. Economies of scale are the cost advantages which a business can exploit through the expansion of its scale of production. The aim of economies of scale is to lower the average costs of production.
When the car manufacturer diversifies his operation by producing pickup trucks and SUVs, there'll be a reduction in the average unit cost of output. This term refers to Economies of scale.
Expansionary monetary policy shifts AD to the right.
<h3>
What is Expansionary monetary policy?</h3>
- Expansionary policy, often known as loose monetary policy, expands the availability of money and credit in order to stimulate economic growth.
- During difficult economic circumstances, a central bank may use expansionary monetary policy to reduce unemployment and stimulate growth.
<h3>Impacts on GDP, unemployment, and inflation by the increase of supply of money:</h3>
- The Federal Reserve begins to grow the money supply at an increasing rate.
- The impact on GDP, unemployment, and inflation would be significant.
- AD is shifted to the right by expansionary monetary policy.
Therefore, expansionary monetary policy shifts AD to the right.
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Answer:
The answer is intensive distribution strategy.
Explanation:
Intensive distribution strategy occurs when a company tries to sell their products through as many outlets as possible, thus ensuring that customers will encounter the company’s products in various distributor points. It is generally done to increase sales of products. Companies that would use this type of strategy are typically those that are competing in a perfect competition market, since product unavailability would just make customers of the product use a different brand from a competitor’s company instead.