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sammy [17]
3 years ago
11

Which of the following statements is true in a capitalist economy?

Business
1 answer:
zepelin [54]3 years ago
6 0

The answer is: b. Markets motivate individual actors to make economic decisions.

In a capitalist economy, the government has very little influence to intervene in the economy. The market is solely controlled by the power of supply and demand. When a lot of people demanded a certain type of products, people who will gain the most profit would be those who are bale to make economic decisions to fulfill the demand in the market.

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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
Please please.pleas help me
Scilla [17]
Answer: in pic
explanation: found here https://environmental-conscience.com/being-a-consultant-pros-cons/

8 0
3 years ago
Lists two things that both increase the money supply?
DENIUS [597]

Answer:

Decrease is taxes

Increase in government spending

Explanation:

Government policies that increases the money supply in an economy is known as expansionary fiscal policy. They are:

1. Decrease is taxes - when government reduces the tax rate, the amount paid as taxes falls and as a result individuals, companies have higher disposable income whuch can be used for consumption or saving. This increases the money supply in the economy.

2. Increase in government spending - if the government increases it's spending on public goods for example, money supply would increase. If the government constructs a road, labour would be employed and paid wages. This payment increases the income of Labour and money supply increases.

Central bank policies that increases money supply are known as expansionary monetary policies. They include:

1. Open market purchase: The central bank purchase securities from the open market to increase money supply.

2. Reduction in reserve requirement ratio : if the reserve requirement ratio is reduced , commercial banks would have more money to give out as loans and this would increase money supply.

6 0
3 years ago
Suppose there is a simple one good economy that only produces spinning rims. In 2015, the economy was able to produce 1 million
Alex_Xolod [135]

Answer: 0

Explanation:

Firstly, we will calculate the nominal value in 2015 which will be:

= $500 x 1 million

= $500 million

The nominal value in 2016 will be:

= $1000 x 1 million

= $1 billion

Real GDP will be the price of the base year multiplied by the quantity of the current year which will be:

= $500 million x 1 million sets

= $500 million

Therefore, the increase in real GDP is zero.

4 0
3 years ago
Bolt Corp. acquires equipment valued at $81,630 by signing a 3-year noninterest-bearing note payable for $100,000. Calculate the
Serga [27]

Answer:

7%

Explanation:

Calculation for the implicit interest rate on the note

First step is to calculate the PV factor

PV factor=$81,630/100,000

PV factor = 0.81630

Last Step is to find the implicit interest rate by using the PV table for 3 years to find the factor that matches the PV factor of 0.81630

Hence the factor that matches the PV factor of 0.81630 can be found or see in the 7% column which means that the implicit interest rate will be 7%

Therefore the implicit interest rate on the note will be 7%

4 0
3 years ago
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