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Snezhnost [94]
3 years ago
11

If the original level of aggregate demand is AD0, then an expansionary monetary policy that shifts aggregate demand to AD1 will

only:A. create an inflationary increase in price level.
B. create an increase in GDP.
C. create an increase in unemployment.
D. create a deflationary loss in price level.

Business
1 answer:
vlabodo [156]3 years ago
8 0

Answer:

A. create an inflationary increase in price level.

Explanation:

A shift of the AD curve to AD1 as a result of expansionary monetary policy, indicates that the AD curve increased and shifted to the right.

A shift to the AD curve to the right increase aggregate price and quantity.

I hope my answer helps you.

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If we had a situation of Diminishing Marginal Productivity, then this would be great news for the firm. Senior management loves
juin [17]

Answer:

The correct answer is the second option: False.

Explanation:

To begin with, the well known term of <em>"Diminishing Marginal Productivity"</em> is understood to be an economic law whose main purpose is to explain that given a certain level of an input, the production of the company will start to go down eventually after adding more and more of that variable. Therefore that this theory states that when a company adds more of a factor of production, everything else constant, when it reaches a certain level that input will start to affect the output of the good and with it the profits of the business. That is why that if the company is in a situation of diminishing marginal productivity the senior management would not be pleased.

3 0
3 years ago
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2015 and 2016, while the
Whitepunk [10]

Answer:

The change in net working capital for the year is $50,000

Explanation:

Net working capital is the difference between Current assets and current liabilities. Change in net working capital is the difference between net working capital at the beginning and st the end.

current assets at the beginning =( 300+400+800)=1500

Current assets at the end = ( 350+450+300)= 1100

current liabilities at the beginning = (300+1000)= 1300

current liabilities at the end = (350+600)= 950

net working capital at the beginning = 1500 - 1300= 200

net working capital at the end = 1100 - 950= 150

therefore the change in net working capital for the year is 200 - 150 =50 000

8 0
3 years ago
s has decided that he wants to build enough retirement wealth that, if invested at 7 percent per year, will provide him with $3,
Crank

Answer:

Annual deposit= $26,344.36

Explanation:

Giving the following information:

The interest rate is 7 percent per year.

He wants to have enough money to provide him with $3,000 of monthly income for 30 years. To date, he has saved nothing, but he still has 20 years until he retires.

First, we need to calculate the total amount of money required:

Final value= 3,000* (30*12)= $1,080,000

Now, we can calculate the annual deposit:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

FV= 1,080,000

i= 0.07

n= 20

A= (1,080,000*0.07) / [(1.07^20) - 1]= $26,344.36

7 0
3 years ago
You are the manager of a large​ crude-oil refinery. As part of the refining​ process, a certain heat exchanger​ (operated at hig
lubasha [3.4K]

Answer:

The company could pay up to 866,965.89 dollars today to solve the current heat exchanger situation

Explanation:

We have to determinate the present value of 7 year annuity which increase at a rate of 7% when the cost of capital is 15% being the first quota 175,000 dollars

\frac{1-(1+g)^{n}\times (1+r)^{-n} }{r - g}  

grow rate 0.07  

required return 0.15

Cuota 175,000

n 7

PV =  866,965.89  

5 0
3 years ago
"Bronson Manufacturing is planning to issue $12 million in bonds. Based on a poll of potential investors, they have the highest
telo118 [61]

Answer:

C.eight-year bond with 5.5% annual interest rate

Explanation:

The computation of the total options under each option is as follows:

As we assume the par value be $1,000

For Option A

Total interest

= 9.5% × $1,000 × 3 years

= $285

For Option  B      

Total interest is

= 7.25% × $1,000 × 4 years

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For Option C

Total interest is

= 5.5% × $1,000 × 8 years

= $440

For Option D

Total interest is

= 6% × $1,000 × 6 years

= $360

As we can see that the option C contains high value of the total interest. So the same is to be selected

6 0
2 years ago
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