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3 years ago

Drag each label to the correct location on the table.

Business

2 answers:

Tasya [4]3 years ago

8 0

Answer:

small carribean... - Hayek

flour pieces... - Keynes

Explanation:

This is 100% the right answer because I got this question on a test and this was correct.

~Please mark me brainliest :)

Tresset [83]3 years ago

4 0

Answer:

The explanation of this question is given below in the explanation section.

Explanation:

In this question, two different scenerios are given regarding two different economic theory. First, we will know that what is Keynes and Hayek economic theory and then do drag the label to correct situation.

Keynes's economic theory

This theory says the government should increase demand to boost growth. Keynesians believe consumer demand is the primary driving force in an economy. As a result, the theory supports expansionary fiscal policy. Its main tools are government spending on infrastructure, unemployment benefits, and education. A drawback is that overdoing Keynesian policies increases inflation.

Hayek's economic theory

This thoery says that how changing prices relay information that helps people determine their plans is widely regarded as an important milestone achievement in economics

Hayek says that markets will heal themselves and that government should not intervene. Keynes says that governments should intervene in order to soften the blow of a depression/recession.

So, the correct labels for these scenerios are:

Keynes:

A small Caribbean island's economy depends on tourism. However, in recent times, it has seen much less economic activity. Its government decides to let the market correct the situation.

Hayek:

Flour prices have risen in a country where bread is a staple part of the diet. As a result, bread prices have risen tremendously. In an effort to make bread affordable for its citizens, the government has limited how much

bakers can charge for bread.

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You bought 200 shares of Stock A at $23.00 per share 6 months ago. It is now worth $47 per share. What was the percent of increa

Nat2105 [25]

Answer:

51 % increase

Explanation:

Stock A price= $23.00

Stock A price after 6 months= $47.00

Increase in price of Stock A= $47 - $23

= $24

Percentage increase in stick price = $24 x 100%

$47

= 0.510 x 100%

= 51%

The percentage increase in the price of Stock A is 51%

Cheers

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4 years ago

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when signing a lease for a retail space, it's important to make sure the lease has a clause, which releases the tenant from the

saul85 [17]

Make sure the lease has a bail-out clause that releases the tenant from the lease if sales fall short of a predetermined level before signing it for a retail space.

<h3>What is a bailout? What are the justifications for bailing out companies?</h3>

Giving financial capital to a business that is perilously near to bankruptcy is known in finance as a bail-out. The bailout's objective is to keep the business from going bankrupt. The phrase can also be used to refer to rescuing seriously troubled nations.

Profit is occasionally a driving force behind bailouts. For instance, if they purchase the extremely discounted shares of a failing company, investors may sense an opportunity. However, it's possible that the objective is charitable. An unsuccessful company may be revived by philanthropists and transformed into a non-profit entity.

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Margaret [11]

Answer: Compound interest pays interest on the principal and the interest earned in each period.

Explanation:edge 2020

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3 years ago

A University of Iowa basketball standout is offered a choice of contracts by the New York Liberty.

Ratling [72]

Answer: The lowest interest rate at which the present value of the second contract exceeds that of the first is a. 7 percent.

Explanation:

Calculating present values is a useful way to compare cases where money is to be received in the future. The higher the present value (when comparing cases where you get money), the better. To calculate it, we make use of the next formula:

$PV=\frac{C}{(1+r)^{n}}$

Where PV: Present value,

C: Cash flow at a given period,

r: Interest rate, and

n: Number of periods that will have passed (in this case, we are talking about years).

Now, since we are getting money twice in each case (the first payment one year from today, and the final payment two years from today), we can restructure our present value formula to include these two payments. We will get something like this:

$PV=\frac{C_1}{1+r}+\frac{C_2}{(1+r)^{2}}$

Notice how each fraction represents one of the payments received, with one having an 'n' of 1 year, and the other one having an 'n' of 2 years. C₁ and C₂ represent the first and the second payment, respectively.

Now that we have our completed formula, let's review each contract's present value (PV) with the lowest interest rate (7%), just to see how it turns out. Remember that 7% equals 0.07 in any formula:

Contract A) This one gives her $100,000 one year from today and $100,000 two years from today.

$PV_{A,0.07}=\frac{100000}{1+0.07}+\frac{100000}{(1+0.07)^{2}}\\PV_{A,0.07}=93457.944+87343.873\\PV_{A,0.07}=180801.817dollars$

So Contract A's present value at 7% interest rate would be equal to $180801.817.

Contract B) The second one gives her $132,000 one year from today and $66,000 two years from today.

$PV_{B,0.07}=\frac{132000}{1+0.07}+\frac{66000}{(1+0.07)^{2}}\\PV_{B,0.07}=123364.486+57646.956\\PV_{B,0.07}=181011.442dollars$

So Contract B's present value at 7% interest rate would be equal to $181011.442, which exceeds that of Contract A.

Since among our options of interest rates, 7 percent is the lowest one, and, with this taken into account, the present value of the second contract (Contract B) exceeded that of the first (Contract A), the answer is a. 7 percent.

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3 years ago