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Mademuasel [1]
3 years ago
6

In the IS–LM model, a decrease in the interest rate would be the result of a(n): increase in government purchases. increase in t

he money supply. decrease in taxes. increase in money demand.
Business
1 answer:
Dmitry [639]3 years ago
5 0

Answer:

Increase in money supply

Explanation:

Option - A: If there is a decrease in the interest rate, government purchases will decrease in the IS-LM model. Therefore, it is not the answer.

<em>Option - B:</em> As the interest rate decreases, people will borrow more money from the bank. The money will be flown quickly; therefore, the money supply will increase. So, it is the answer.

Option - C: There will be an increase in taxes. Therefore, it is not the answer.

Option - D: As there is an increase in the money supply, the opposite will happen with the money demand. Therefore, it cannot be the answer.

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How physical asset valuation (PAV) and research and
stellarik [79]

Answer:

We'll take this one after the other.

A. First Physical Asset Valuation (PAV) refers to the act of writing up or writing down the carrying value of an organisations assets in its balance sheet.

In simple terms, it refers to increasing upwards or downwards the value of an organisations asset in its balance sheet.

When assets are written down, the following are likely to occur:

Critical changes to an organization’s business model or strategy, such as termination of the business and  loss of a regulatory licence;

A significant reduction in the cash flow or bottom line of the business;

when the long term growth rates, interest rates or other financial factors such as prices or value of currencies, upon which a business valuation based decline, this impacts the valuation of an asset negatively.

   

B. Research and  Development (R&D)

R&D refers to all the studies, scientific investigations and experiments carried out to enable the discovery and creation of a new or innovative product or service that is more efficient and effective.  

       

The reason there is a risk associated with R&D is that there are usually many elements of uncertainty.  

The ideas being tested are usually novel and have not been tried before.  

Some of the risks associated with R&D are:

the possibility that the new product will fail in the market;

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Cheers!

6 0
3 years ago
The cost of the merchandise inventory that the business ▼ has sold to customers.
Ivan

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8 0
3 years ago
Suppose an unlevered firm issues $1000 in debt at a cost of debt of 10%. If the corporate tax rate is 20%, what is the change in
Strike441 [17]

Suppose an unlevered firm issues $1000 in debt at a cost of debt of 10%. If the corporate tax rate is 20%, $200 t is the change in the firm's value.

Due to the issue of the corporate tax rate is entitled to Interest Tax Shield assuming Debt issued by the firm is perpetual and ignoring financial distress costs

Change in Value of firm

=Net Effect of Debt Financing

=Present Value of Interest Tax Shield (financial distress costs ignored)

= DebtValue * Cost of Debt * Tax Rate Interest Rate

= $1,000 * 10% * 20% 10%

=$200,

corporate tax rate, also known as corporate income tax or corporate tax, is a direct tax levied on the income or capital of a corporation or similar corporation. Many countries impose such taxes at the national level, and similar taxes may be levied at the state or local level.

Learn more about tax rate here: brainly.com/question/25791968

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3 0
2 years ago
Matrix Corporation's balance sheet and income statement appear below: Comparative Balance Sheet Ending Balance Beginning Balance
Bad White [126]

Answer:

Check the explanation

Explanation:

Cash flow from operating activities:  

Net income                                                                     $116

Adjustment to reconcile net income to cash basis:  

Depreciation expense ($359+1-347)                              $13

Gain on sale of equipment                                              (14)

Decrease in account receivable (40-39)                         $1

Decrease in inventory (44-43)                                          $1

Increase in account payable (30-26)                               $4

Decrease in accrued liabilities (18-15)                              (3)

Decrease in income tax payable (40-39)                         (1)

Net cash flow from operating activities                           $117

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ra1l [238]
I haven’t decided exactly what I wanna do yet, but here are my options:

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