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wlad13 [49]
3 years ago
14

The liquidity trap refers to the

Business
1 answer:
kipiarov [429]3 years ago
7 0

Answer:

The answer is d. possibility that interest rates drop so low that people willingly hold all the additions to the money supply, rather than use it to buy bonds

Explanation:

A liquidity trap is a situation in which interest rates are low and savings rates are high. It occurs when  monetary policy becomes ineffective because, despite zero/very low-interest rates, people want to hold cash rather than spend or buy illiquid assets

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The constant dividend growth model: a. is more complex than the differential growth model. b. requires the growth period be limi
Finger [1]

Answer:

The correct answer is letter "D": can be used to compute a stock price at any point in time.

Explanation:

The Gordon Growth Model, also known as the Constant Dividend Growth Model, is used to measure the value of the stock at any point in time based on the projected future dividends of the stock. Investors and analysts are commonly used to compare the estimated value of the stock against the current market price. Analysts interpret the gap between the two prices as proof that the stock could be under or overvalued by the market.

8 0
3 years ago
When a company chooses to market a product in certain parts of the country but not in others because consumer preferences of one
dexar [7]

When a company chooses to market a product in certain parts of the country but not in others because consumer preferences of one region differ from another region, it is known as geographic segmentation.

<h3>What are consumer preferences?</h3>

The products or commodities, which are demanded by consumers in a specific quantity at a given price due to the utility it brings to an individual consumer, is known as a consumer preference.

Hence, option A holds true regarding consumer preference.

Learn more about consumer preferences here:

brainly.com/question/3129917

#SPJ1

6 0
1 year ago
According to virginia satir, the single factor determining the kinds of relationships we make with others is
Lilit [14]

According to Virginia Satir, communication is <span>the single factor determining the kinds of relationships we make with others.

</span><span>Virginia Satir was an American author and social worker, known especially for her approach to family therapy and her work with family reconstruction.</span>

3 0
3 years ago
Arkansas Corporation manufactures liquid chemicals A and B from a joint process. It allocates joint costs on the basis of sales
Dvinal [7]

Answer:

The company's cost to produce 1,000 gallons of product B is $7,131.25.

Explanation:

This can be calculatd as follows:

Product B share of joint cost = (Product B sales value / (Product B sales value + Product A sales value)) * Cost to split-off point = ($32.20 / ($32.20 + $3.00)) * $5,500 = 0.914772727272727 * $5,500 = 5,031.25

Product B total additional separable process beyond split-off = Additional cost per gallon * Number of gallons of product B produced = $2.10 * 1,000 = $2,100

Therefore, we have:

Company's cost to produce 1,000 gallons of product B = Product B share of joint cost + Product B total additional separable process beyond split-off = 5,031.25 + $2,100 = $7,131.25

Therefore, the company's cost to produce 1,000 gallons of product B is $7,131.25.

4 0
3 years ago
A perfectly competitive firm produces​ 3,000 units of a good at a total cost of​ $36,000. The fixed cost of production is​ $20,0
kati45 [8]

Answer:

 A. ​Yes, it should continue to produce because the​ firm's revenues cover the total variable cost of​ $16,000. 

Explanation:

A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. Market participants are price takers.

In the short run ,if price is less than average variable cost, the firm should shutdown.

Also, if total revenue is less than the total variable cost, the firm should shutdown into the short run.

Total revenue = $10 x 3000 = $30,000

Total cost = Fixed cost + variable cost

$36,000 = $20,000 + variable cost

Variable cost = $16,000

Total revenue is greater than total variable cost, so the firm should continue operations in the short run.

I hope my answer helps you

3 0
3 years ago
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