Selling bonds to banks methods of government deficit finance is MOST likely to crowd out private investment
What is crowding out of private investment?
Definition: A situation when increased interest rates lead to a reduction in private investment spending such that it dampens the initial increase of total investment spending is called crowding out effect.
How government deficits can crowd out private investment?
If budget deficits are to be financed by borrowing, interest rates must rise so that capital markets can reach equilibrium. High interest rates, in turn, result in a decreased investment, hence the crowding-out effect.
What does it mean for banks to sell bonds?
When a central bank buys bonds, money is flowing from the central bank to individual banks in the economy, increasing the money supply in circulation. When a central bank sells bonds, then money from individual banks in the economy is flowing into the central bank—reducing the quantity of money in the economy.
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Answer:
d. only when there is an exchange transaction involving the purchase of an entire business.
Explanation:
Goodwill: Goodwill is an intangible asset that is shown in the asset side of the balance sheet just like intellectual properties, trademark, etc. The goodwill is recognized when it is purchasing the business of the organization
The goodwill is computed by considering the consideration that is paid and the net assets value based on fair value.
Hence, the most appropriate option is d. as the other reasons are not valid
Answer: Prepaid cost more because it has more perks than contract, it offers more to the customer's either in data or calls
Explanation:
Prepaid phone services are services that which requires you to pay an upfront for the plans you'll be using in either calling,browsing or texting
While contract has you to choose from monthly plans
Prepaid cost more because it has more perks than contract, it offers more to the customer's either in data or calls
Answer:
The correct option is B
Explanation:
The return on assets would be:
Return on assets (ROA)= Assets × Return
= $45,000,000 × 12%
= $5,400,000
Return per customer = ROA / Number of golfers
= $5,400,000 / 400,000
= $13.50
Fixed Cost per Customer = Fixed Cost / Number of golfers
= $20,000,000 / 400,000
= $50
Cost to be charged per customer = Profit + Fixed Cost + Variable Cost
= $13.50 + $50 + $15
= $78.50
Answer:
a) 6W+15B
subject to:
4W+2B ≤ 60
4W + 12B≤ 120
W>0
B>0
b) see attachment
Explanation:
a) W: wren birdhouse
B: bluebird house
Objective function:
6W+15B
Explicit constraints:
4W+2B ≤ 60
4W + 12B≤ 120
Implicit constraints
W>0
B>0
b) coordinates of optimal region:
(0,0), (0,10), (12,6), (15,0)
For optimum profit:
(0,0): 6(0) + 15(0)= 0
(0,10): 6(0) + 15(10)= 150
(12,6): 6(12) + 15(6)= 162
(15,0): 6(15) + 15(0)= 90
Optimal solution is: (12,6) or 12 wren birdhouse and 6 bluebird house