In an effort to prevent future financial crises like the stock market crash of 1929, in the 1930s Congress formed the FDIC.
<h3>What is the FDIC?</h3>
The Federal Deposit Insurance Corporation (FDIC) was formed by th Congress after the stock market crash of 1929.Bank run was attributed to be one of the causes of the great depression. The FDIC increases confidence of depositors in banks because they insure the deposit of bank customers.
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Answer:
If MPC is 0.8, Change in GDP = $500 million
If MPC is 0.95, Change in GDP = $2,000 million
Explanation:
<em>Expenditure Multiplier is the amount by which the real GDP will change if autonomous expenditure changes by a given amount.</em>
It is calculated as follows: 1/(1-MPC).
MPC is the portion of additional income that is spent. If the MPC is 0.8, then the expenditure multiplier will be = 1/(1-0.8) = 5
Using the first scenario with an increase in government spending by $100million, the resulting change in GDP would be
Change in GDP = change in autonomous expenditure × Multiplier
= 100 × 5 = $500 million
<em>Scenario 2, MPC of 0.95</em>
Expenditure Multiplier = 1/(1-0.95) = 20
Change in GDP= 100 × 20 = $2000 million
Answer:
See answers below
Explanation:
a. Direct materials & supplies $40,000 = $40,000 × 110%
= $44,000 × 20,000/25,000
= $35,200
Employee costs = $2,900,000 × 105%
= $3,045,000 × 20,000/25,000
= $2,346,000
Variable overhead = $600,000 × 100%
= $600,000 × 20,000/25000
= $480,000
Fixed overhead = $700,000 × 105%
= $735,000
b. Total costs per unit year 2 =
$3,596,000 / 20,000
= $179.81
The natural next step to be taken by team engaged in process analysis will be make the tallest bar of the Pareto chart the head of a fishbone diagram.
Process analysis is a continuous improvement approach whereby businesses examine their operations to find more efficient strategies to accomplish a given task. The three aspects of any activity—input, processing, and output—are the foundation of this approach. Process analysis analyzes how much an input is changed to generate the desired output by a business. One purpose of this research is to use less resources, including time, to achieve the desired outcomes.
A process analysis will watch and document how a specific task is carried out to fully describe every one of the steps and relevant personnel in it. He then will typically design a flow chart to illustrate how well the input flows through the system in the business.
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Answer:
a. have performance attributes that are difficult to ascertain at the moment of purchase
Explanation:
In case of an experience good, it is difficult to make predictions regarding its price and quality.
The reputation of a seller and word of mouth are the important things that customers can use to make decisions regarding purchasing of the product.
Experience goods are those which have performance attributes that are difficult to ascertain at the moment of purchase
