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Fofino [41]
3 years ago
15

The reason for the multiplier effect is that a. businesses make decisions about investment projects based on anticipated profits

. b. one person's additional expenditure creates a new source of income for another person, and this additional income leads to still more spending. c. changes in government spending typically deepen recessions and exacerbate inflationary conditions in the economy. d. additional spending lowers the rate of interest and leads to further borrowing and spending.
Business
1 answer:
Alenkasestr [34]3 years ago
3 0

Answer: Option B    

Explanation: In simple words, multiplier effect refers to the process under which a particular amount of expenditure results in the change in income greater than the amount of that expenditure made.

Usually this is used to depict the impact of the expenditures made by the government to boos the economy.

Hence from the above we can conclude that the correct option is B.

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A bad credit rating could prevent you from obtaining a
Whitepunk [10]

Good credit score.

It's hard to answer without having choices to choose from as there are loads of things a bad credit score can prevent you from obtaining.

Sorry I couldn't help more.

8 0
3 years ago
Bob has decided to start investing. After doing his research, he has decided he wants to invest in a safe invest with guaranteed
Snezhnost [94]
I would say that the correct answer from the choices listed above is the third option. Bob would most likely going to buy bonds. Bonds are known to be very safe however it has low return. So, it should bonds the correct answer. Hope this helps. Have a nice day. 
4 0
4 years ago
Henson Company began the year with retained earnings of $330,000. During the year, the company recorded revenues of $500,000, ex
IceJOKER [234]

Answer:

Henson’s retained earnings at the end of the year was $410,000

Explanation:

Ending balance in retained earnings is calculated by using following formula:

Ending balance in retained earnings = Beginning balance in retained earnings + Net income - Cash dividends - Stock dividends

Henson Company began the year with retained earnings of $330,000.

The company paid dividends of $40,000

Henson's Net income = Revenues - Expenses = $500,000 - $380,000 = $120,000

Ending balance in retained earnings = $330,000 + $120,000 - $40,000 = $410,000

3 0
3 years ago
Match the following terms:1. The mix of accounts/itAsset Structure 2. The mix of all accounts/items on the right hand side of th
Vesnalui [34]

Answer:

Matching terms:

1. The mix of accounts/Asset Structure

D. Asset Structure

2. The mix of all accounts/items on the right hand side of the balance sheet

C. Financial Structure

3. The mix of longer term items on the right side of the balance sheet explicitly used to fund the corporation:

B. Capital Structure

4. The ratio of debt to total assets:

A. Leverage

Explanation:

Options and definitions:

A. Leverage: the amount of debt a firm uses to finance its assets.

B. Capital Structure: the combination of long-term debt and equity.

C. Financial Structure: the mix of all of a company's liabilities and its equities.

D. Asset Structure: the distribution of a firm's asset base in different asset categories, like buildings, plant, and equipment.

8 0
3 years ago
By tying a manager's compensation to the performance of the firm relative to that of its competitors, corporate stockholders and
tensa zangetsu [6.8K]

Answer:

The correct answer is letter "A": principal-agent problem.

Explanation:

The principal-agent problem arises when a principal employs an agent to perform duties that conflict with the agent's best interests. The problem typically occurs when the principal provides the agent with incentives that act in the principal's interest but is for the agent a conflictive agenda. In the managerial world, the principal-agent problem usually occurs between stockholders and the CEO (Chief Executive Officer).

4 0
3 years ago
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