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Shtirlitz [24]
3 years ago
15

Explain whether each of the following will cause a shift of the AD curve or a movement along the AD curve. a. Firms become more

optimistic and increase their spending on machinery and equipment. b. The federal government increases taxes in an attempt to reduce a budget deficit. c. The U.S. economy experiences 4 percent inflation.
Business
1 answer:
Aleks04 [339]3 years ago
7 0

Answer:

a. AD curve will shift to the right

b. AD curve will shift to the left

c. Movement along the AD curve.

Explanation:

a. When firms become more optimistic and increase their spending on machineries,this brings about changes in investment and it will cause a shift to the right in the aggregate demand curve.

b. When The federal government increases taxes in an attempt to reduce a budget deficit. This will cause a change in consumption as people will have less money to spend since disposable income has been reduced, and it will cause the aggregate demand curve to shift inwards to the left.

c. A 4 percent in US inflation will bring about a change in price level and there will be a movement along the aggregate demand curve.

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The Real Estate Recovery fund is financed through money received from administrative fines and surcharges on new and renewing li
Lelu [443]

Answer:

The correct answer is:  $1,000,000 (one million dollars).

Explanation:

The Real Estate Recovery fund is the poll of money collected to refund people who have been affected somehow by real state brokers or salespeople. Fraud, misrepresentation or deceit are considered for his purpose and it is given only when no benefit can be provided to the person affected after court. If the amount implied is greater than $1,000,000 (one million dollars) the Real Estate Recovery Fund is unable to provide any reimbursement aid.

3 0
3 years ago
Suppose you know a company's stock currently sells for $64 per share and the required return on the stock is 0.12. You also know
jasenka [17]

Answer:

$3.62

Explanation:

Dividend Yield = 0.12/2

Dividend Yield = 0.06

==> (Dividend in One Year)/Current Price= .045

D1 = 0.06*$64

D1 = $3.84

D0 (Current Dividend) = D1/(1+Dividend Yield)

D0 (Current Dividend) = $3.84/(1.06)

D0 (Current Dividend) = 3.622641509433962

D0 (Current Dividend) = $3.62

6 0
3 years ago
Assume you are a brand manager of a clothing brand that offers formal clothing for gents in mid-tier market segment. The brand i
vlada-n [284]

Answer:

Following steps are followed to carry out research for declining sales,

Define the problem

List possible solution

Evaluate each alternative solution

Finalize the solution

Implement the solution

Measure results

Explanation:

Sales is very crucial element for any business. The declining sales at gents clothing brand has created a problem for business managers. The declining sales will results in many problems like, inventory obsolete issues, lesser profits, increase cost and similar. The main reason for declining sales could be change in fashion or trend. Gents clothing is very much impacted by celebrities. If some popular celebrity has changed its way of dressing the impact can be observed in entire fashion industry.

8 0
3 years ago
The listing agent received a full price offer that she faxed to the out-of-town seller. The seller signed the faxed copy, and fa
ExtremeBDS [4]

Answer: Yes contract has been formed.

Explanation: According to the Uniform Electronic Transaction Act (UETA), electronic transactions are just as binding as transactions made on hardcopy documents. Moreover signatures made electronically reinforces the validity of these elctronic documents.

In the scenario the actual signature was signed on a hard copy by the seller, but it was then faxed back to the listing agent. This faxed copy, showing the faxed signature, is an electronic document that confirms the existence of the contract in accordance with the UETA. This faxed signature is as enforceable as an ink signature.

6 0
3 years ago
New steel products has total assets of $820,470, a total asset turnover rate of 1. 39, a debt-equity ratio of 2. 8, and a return
nadya68 [22]

The firm's net income is $114,045,330.

Total Asset Turnover = Sales / Assets

or, 1.39 = Sales / $820,470

Sales = $820,470 × 1.39 = $1,140,453.3

Now,

Equity Multiplier

= Assets / Equity

= (Debt + Equity) / Equity

= (2.8 + 1) / 1

= 3.8

(Debt equity ratio has been used here)

As per Dupont Analysis,

ROE = Profit margin x Asset Turnover x Equity Multiplier

or, 0.34% = Profit Margin x 1.39 x 3.8

Profit Margin = 5.282%

Profit Margin = Net Income / Sales x 100

5.282% = Net Income / $1,140,453.3 x 100

Thus, Net Income = $114,045,330

Net income is an amount which an individual or business makes after deducting costs, taxes, and allowances. Thus, net income is what the business has left over after all its expenses.

To learn more about Net income here:

brainly.com/question/1347024

#SPJ4

7 0
2 years ago
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