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3 years ago

The consumption function will shift down if:

Business

1 answer:

andrezito [222]3 years ago

8 0

Answer:

The correct answer is option d.

Explanation:

The consumption function shows the relationship between income level and consumption. It includes autonomous consumption that does not depends on the income level, marginal propensity to consume, and income level.

The consumption function shifts because of a change in the expectations of the consumers. If consumers expect the minimum wage to decrease in future, the consumption function will shift downwards.

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A company has the following items on its year-end trial balance:Net sales $500‚000Common stock 100,000Insurance expense 75,000Wa

Debora [2.8K]

Answer:

C. $400,000

Explanation:

The computation of the gross profit is shown below:

Gross profit = Net Sales - costs of goods sold

= $500,000 - $100,000

= $400,000

For determining the gross profit, we deduct the costs of goods sold from the net sales, so that the true value can come. It is shown in the income statement

All other information which is given is not relevant. Hence, ignored it

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3 years ago

This is what i get for missing online lessons haha

Bas_tet [7]

Answer:

22.28%

Explanation:

As per the pie chart

Variable costs: £2,150.00

Fixed costs £7,500.00

Total weekly costs = variable costs + fixed costs

= £2,150.00 +£7,500.00

=£9,650

Variable costs as a percentage of weekly costs

= £2,150/£9,650 x 100

=22.279792%

=22.28%

6 0

3 years ago

What convinces Nick that Gatsby might be telling the truth about his background? A: He shows Nick a business card with his real

Dominik [7]

Answer:

C. Gatsby shows Nick a medal from Montenegro

Explanation:

Nick went for a lunch with Gatsby wherein the latter recounts his story on drive, which is hard for Nick to believe.

To substantiate his narration and to take Nick into confidence, Gatsby hands over to Nick, various articles such as his old university days photograph, the medal he won at Montenegro.

The latter i.e the medal convinces Nick that Gatsby might have told the truth about his background, in the story he just narrated.

8 0

3 years ago

An Internet company in South Florida is receiving frequent requests from employees who want to telecommute. The company's CTO wa

enot [183]

Answer with Explanation:

Following are the three guidelines that telecommuters must follow along with its benefits:

Confidentiality must not be breached because the employee is working from home or somewhere he feel comfortable. So the employee must ensure that the he doesn't intentionally and unintentionally breach confidentiality agreement.
Ensure Time management which means if they are not giving agreed time to the company affairs then they are not affecting several tasks that will end up in increase in cost and decrease in customer satisfaction.
Achieve daily goals because they are accountable for the tasks they are assigned and must remain focused. This will fulfill the purpose of recruiting them which means that the employee is fulfilling his promise of delivering the work agreed. This will help the company gain the benefit for which the company has recruited the employee.

5 0

4 years ago

Order these loans from highest monthly payment to lowest monthly payment. (Enter 1 as your answer to designate loan with highest

sergij07 [2.7K]

Answer:

(a) 5

(b) 3

(d) 4

(e) 2

Explanation:

The way to answer this question is actually simple and does not necessarily require complicated calculations, or computations of amortization schedules etc. You can answer the question by looking at it intuitively. Now, lets see how the mortgage works in practical life (given the information presented in the question). The loan amount is $300,000 with an interest rate of 3.5% per year. You would be paying a certain amount of interest on this loan on a monthly basis. This is calculated by multiplying the loan amount by one-twelfth of the interest rate since the quoted rate is on a yearly basis. So the first month's interest payment would be $875(300,000 x 3.5% / 12). Now, along with interest payments, you may a certain amount of money towards reducing the principal loan amount as well. So, we see that the first month's interest payment was $875 but the actual monthly payment (as per the loan agreement) might be higher because you are paying a bit off the principal as well. So, over the life of the loan, the principal payments will go up and interest payments would go down with the total monthly payments remaining the same until, at the end of the loan tenor, the loan is completely settled.

Now, some of the options mention a balloon payment. This balloon payment refers to a loan in which not all of the principal amount is run down by the maturity date. Which means, a certain portion of the principal amount (lets say $ 50,000) is remaining. This is referred to as a balloon payment since this is a payment, that is considerably larger than the monthly payments you were making, that needs to be paid in one go at the maturity date. We can see both logically and mathematically, that the higher the amount of the balloon payment, the lower the amount paid in monthly principal payments, and therefore, the lower monthly payment amount overall.

Now, out of the options presented, option (c) would have the highest number of monthly payments because the loan is being fully settled at maturity. This means that the monthly principal repayment component would be higher compared to the other loan options.

Option (d) would have the one of the lowest monthly payment since only interest is being paid on the monthly basis. The entire principal will be repaid at maturity (in a balloon payment of $300,000).

Option (a) would have the LOWEST monthly payment because, the loan amount is $300,000 whereas a considerably larger amount of $500,000 is being made in a balloon payment on maturity. This means that there is zero principal payment being made on a monthly basis AND the interest payment is lower as well. So, while the interest rate is the same as in the other loans (3.5%), the interest is being accumulated rather than being paid of on a monthly basis, and will be paid along with the entire principal payment in one massive balloon payment at the end of the loan tenor. Which means, this option would have the lowest monthly payments.

The rest of the options (b and e) come in between with option e having higher monthly payments than option d since the balloon payment amount is larger.

out of the options presented, most of them involve a balloon payment at maturity.

5 0

4 years ago