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3 years ago

When the economy is in a severe recession, an increase in aggregate demand will lead to __________.

Business

1 answer:

tester [92]3 years ago

6 0

Answer:

The correct answer is letter "A": an increase in the long-run equilibrium level of output.

Explanation:

Aggregate Demand is a macroeconomic term describing the total demand in an economy for all goods and services at any given price level in a given period. That scenario implies aggregate demand is the demand for the Gross Domestic Product (GDP) of a country.

In front of a recession, the government should promote the increase the aggregate demand by lowering rates so more loans will be available and reachable. With more loans, more investments come and in the long term, the output is likely to hit its equilibrium point.

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When customer service problems occur and the culture is not customer-focused, the important question for the organization is "Ho

tigry1 [53]

Answer:

We fix it by committing to the customer and setting up an environment to support it.

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3 years ago

Read 2 more answers

The Corner Hardware has succeeded in increasing the amount of goods it sells while holding the amount of inventory on hand at a

katrin [286]

Answer:

decrease in the day's sales inventory

Explanation:

Corner Hardware has succeeded in increasing the number of goods it sells while holding the amount of inventory on hand, cost per unit, and the selling price per unit at a constant level.

This situation will be reflected in the firm's financial ratios in the form of a decrease in the day's sales inventory.

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2 years ago

Why would firms that rely heavily on credit sales find factoring attractive?

lorasvet [3.4K]

From my understanding, factoring is a specific transaction in which a business sells its invoices to a factor, which is a third party commercial financial company. This process is completed so that the business can get cash quicker than it would to wait for a customer’s payment. With factoring, a company will have moremore more flexibility because the funds are not restricted, rather than having to deal with a typical bank loan

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3 years ago

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annua

Veseljchak [2.6K]

Answer:

Bond price=$888.35

Explanation:

The value of the bond is the present value (PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV) discounted at the yield rate

Value of Bond = PV of interest + PV of RV

The value of bond for Local School District can be worked out as follows:

Step 1

PV of interest payments

PV = A × (1+r)^(-n)/r

A-annul interest payment:

= 7.5% × 1,000× = 75

r-Annual yield = 8.6%

n-Maturity period = 25

PV of interest payment:

=75× (1- (1+0.086)^(-25)/0.086)

= 761.22

Step 2

PV of Redemption Value

= 1000 × (1.017)^(-25)

= $127.131

Step 3

Price of bond

=761.222 + 127.13

=$888.35

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3 years ago

Assume the macro islands can produce either 25 fishing boats or 150 jars of guava jelly in one hour. the micro islands can produ

LenKa [72]

Answer:

The correct answer is letter "C": the Macro Islands have a comparative advantage in producing fishing boats, and the Micro Islands have a comparative advantage in producing guava jelly.

Explanation:

Comparative advantage is an advantage an individual, organization or country has to use opportunity costs in their production compared to their competitors. The scenario described above does not imply that the individual, organization or country has an absolute advantage.

In the example proposed:

Comparative advantage of Macro islands in fishing boats = $\frac{25}{150}= 0.17$
Comparative advantage of Micro islands in fishing boats = $\frac{30}{300} = 0.10$

Comparative advantage of Macro islands in jars = $\frac{150}{25} = 6$
Comparative advantage of Micro islands in jars = $\frac{300}{30} = 10$

Thus, the Macro Islands have a comparative advantage in producing fishing boats, and the Micro Islands have a comparative advantage in producing guava jelly.

5 0

3 years ago