I will assume this is a true or false question, the answer is true. Stimulate demand implies make or upgrade request. Request brings about monetary action, so you empower request to animate the economy. I hope the answer will help you..
According to Adam smith, by pursuing its self-interest (maximizing profits), a firm tends to meet the needs of society.
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Who is Adam smith?</h3>
Scottish economist and philosopher Adam Smith was a leading proponent of political economy and a pivotal figure in the Scottish Enlightenment. According to Adam Smith's economic theory, markets typically function most effectively when the government keeps out of the way. A result of Adam Smith's beliefs on capitalism, free markets, and supply and demand, he is referred to as the "father of economics." Smith supported the idea of taxing income, profits, sales, and labor.
The Law of Demand and Supply, the Law of Self Interest, and the Law of Competition are Adam Smith's three economic laws. According to these laws, sufficient commodities would be produced at the lowest cost to satisfy demand in a market economy, and better items would be produced at lower costs owing to competition.
Hence, According to Adam smith, by pursuing its self-interest (maximizing profits), a firm tends to meet the needs of society.
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Answer:
A) EUAC = 38625.09 / 3.4869 = 11077.354
B) $83225.79
Explanation:
A ) Determining the EUAC of providing the scholarship
EUAC = sum of present values / sum of present value factors
present value is calculated as ( p ) = year * present value factor
the present value factor for the various(4) years are : ( 1.000, 0.9091,0.8264,0.7513 ) = 3.4869
present value for the 4 years =( $10000 , $9,090.91, 8264.46, 11269.72 )
total = $38625.09
therefore EUAC = 38625.09 / 3.4869 = 11077.354
B ) THE MONEY LAQUESHA MUST DONATE
interest rate for perpetuity = 1.10 ^4 - 1
= 1.4641 -1 = 0.4641
therefore amount to be donated = total present value / interest rate for perpetuity
= 38625.09 / 0.4641 = $83225.79
