Answer:
Multiplier effect
Explanation:
Multiplier effect refers to the increases in the final income as a result of new injections in spending. It indicates changes in spending that causes changes in real gross domestic product more than the initial change in spending. The scenario presented in the question illustrates multiplier effect. It involves increase in the level of demand in the circular flow of income that stimulates buying and selling.
Answer:
d
Explanation:
market structure depends upon the ease of entry and exit, the number of firms in the market, the ability to differentiate their goods and services, easy transfer of the factors of production etc.
Answer:
a.
Relevant costs:
Supplies costs
Inspection costs
Assembly costs
Irrelevant cost:
power cost
b.$20,000
Explanation:
The following costs are relevant because they would be incurred as a result of investing in either of the two alternatives:
Supplies costs
Inspection costs
Assembly costs
Power costs is not relevant because is not incurred as direct consequence of the two alternatives,even when none of the alternatives is chosen power cost would still be incurred.
Costs of alternative M=$77,000+$49,000+$42,000+$168000
Costs of alternative N=$68,000+$49,000+$31,000=$148,000
Differential cost=$168,000-$148,000=$20,000
<span>The federal government
could avoid creating a new federal agency for collecting the tax. The federal government would have to create a new collection
system for a national VAT. A national VAT would be less likely
to cause jurisdictional conflict between the federal government and the
states because states do not depend on VAT as a source of revenue.</span>
Answer:
Explanation:
USD GBP Prefers
Dell 7 9 GBP
Virgin Airlines 8 8.5 USD
In a swap exchange Party A will have a relative preferred position in one money and Party B will have a bit of leeway in the other cash. For this situation Dell has a similar bit of leeway in USD getting rate and Virgin has a preferred position in GBP acquiring rate.
Additionally note that dependent on the FICO assessments of the organization the acquiring rate will vary pulling in parties for a swap exchange.
Virgin would borrow £10 million for two years and Dell would borrow $16 million for two years. The two companies would then swap their proceeds and payment streams. Then they enter into a swap agreement to exchange their cash flows to get their preferred currency rates with an interest rate mutually benefiting both the parties.