Answer:
option c it will have negative consequences..
Answer:
Regarding to Claim to income, the correct answer would be C-Bottom
Explanation:
Shareholders can be preferred or common and they have differents claims to income. Generally, preferred stock will be given preference in assets to common assets in case of company liquidation, nonetheless both will fall behind bondholders if asset distribution happen. If bankruptcy happen, common stock investors will receive any remaining funds after bondholders, then creditors and preferred stockholders are paid. That's why these investors often receive nothing after a bankruptcy. Preferred stock also has the first right to receive dividends. In general, common stock shareholders will not receive dividends until it is paid out to preferred shareholders, and that happen because they are at the bottom of the pyramid.
Answer:
b. In the first economy, the spending multiplier is greater than in the second economy. In the third economy, the spending multiplier is undefined
Explanation:
This can be easily understood by going through some calculations in a spending multiplier formula.
WORKINGS
The formula for Spending Multiplier = 
Spending Multiplier
Economy 1: Multiplier = 
= 2
Economy 2: Multiplier = 
= 1
Economy 3: Multiplier = 
= undefined
Note: MPS can be abbreviated as Marginal propensity to save
As we can see here economy 1 is 50% greater than economy 2 and economy 3 is undefined because they spend whole dollar they earn additionally.
On behalf of the above calculations, option B is a perfect match!
Answer:
The borrower is best off in situation <u>"a"</u> and the lender is best off in situation ▼ "C" .
Explanation:
Considering all the situations given in the options, the <u>borrower</u> is best in situation <u>a</u> and <u>lender</u> is best off in situation in <u>c</u>.
<u>Part a </u>
Real Interest rate = Nominal Interest rate - Inflation rate = 14 - 17 = -3 per cent. Thus, the purchasing power of money has fallen and the person has to pay back money with little purchasing power as compared to the value of the purchasing power at the time he borrowed money. Thus, borrowers are best off.Thus, <u>borrower</u> is best off when the inflation rate is very high.
<u>Part c</u>
Inflation rate is negative, thus the purchasing power of money will increase and lenders will get back money with higher purchasing power as compared to the value of the purchasing power of money at the time he lend the money. Thus, <u>lender </u>is best off when inflation rate is lowest.
Answer:
Request for proposal
Explanation:
The correct answer is a request for proposal. A request for proposal (RFP) is a business document that announces and gives detailed explanations about a project, it also helps an organization solicitation of bids from contractors who will help in the completion of the project. organization clarify training objectives, compare vendors, and measure results.
