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sammy [17]
2 years ago
6

Practice: True or False 1. Investment spending is spending on financial assets like stocks and bonds F 2. Transfer payments are

not counted in the calculation of GDP 3. If the nominal GDP increases then the economy is definitely experiencing inflation 4. An economy is not at full employment unless there is no unemployment 5. Countries that have generous unemployment benefits tend to have higher natural rates of unemployment 6. Lumberjacks are structurally unemployment when they are replaced by machines
Business
2 answers:
Colt1911 [192]2 years ago
8 0

Answer:

1. False

2. True

3. False

4. False

5. True

6. True

Explanation:

1. False: Investment spending is spending on financial assets like stocks and bonds.

2. True: Transfer payments are not counted in the calculation of GDP.

3. False: If the nominal GDP increases then the economy is definitely experiencing inflation.

4. False: An economy is not at full employment unless there is no unemployment.

5. True: Countries that have generous unemployment benefits tend to have higher natural rates of unemployment. 6. True: Lumberjacks are structurally unemployment when they are replaced by machines.

Aleksandr [31]2 years ago
3 0

Answer:

1. False

2. True

3. False

4. False.

5. True

6. True

Explanation:

Investment spending is the purchases of land, machinery, infrastructure or production inputs. Investment spending is different from investment, which is the purchase of financial instruments like bonds, stocks, and derivatives.

Transfer payments are not calculated in the GDP. An example of a transfer payment is a welfare check that is received by a household. Transfer payments are not included because nothing gets produced as money is simply just transferred from one group to another.

Nominal GDP increases due to a positive economic growth. The nominal GDP could increase because production has increased and due to increase in in the price.

Full employment means that the unemployment has fallen to a lowest possible level which won't cause inflation. Full employment does not mean there won't be unemployment at all in the economy.

Countries that have generous unemployment benefits tend to have higher natural rates of unemployment unemployment because the workers are always coming and going, looking for better jobs.

Lumberjacks are structurally unemployment when they are replaced by machines because it is an unemployment that results.from industrial reorganization, due to technological change.

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What is innovation? (Media Literacy)
BabaBlast [244]

Answer:

A. A groundbreaking idea, product, or method

Explanation:

Innovation refers to the process that leads to the formation of new ideas that has been been invented before. It refers to the fresh ideas that helps in attracting people inn terms of business. Idea generation helps in new development and thereby helps in the progress. The introduction of the idea from the existing resources helps in the formation of new ideas that take the shape of innovation.

7 0
3 years ago
If the demand for a good falls by less than the supply of the good rises, then the good’s equilibrium price will __________ and
STatiana [176]

If the demand for a good falls by less than the supply of the good rises, then the good’s equilibrium price will fall and its equilibrium quantity will rise.
According to the law of demand indicates that as price increases, consumers are willing and able to purchase less so the quantity demanded will fall and cause the downward sloping demand curve. So when price falls, consumers are willing and able to purchase more.
6 0
3 years ago
Assume that you have been hired as a consultant by CGT, a major producer of chemicals and plastics, including plastic grocery ba
koban [17]

Answer:

d. 5.14%.

Explanation:

Calculation to determine the best estimate of the after-tax cost of debt.

First step

Based on the information given we would make use of rate formula in excel.

=rate(nper,pmt,-pv,fv)

Where,

nper= coupon every six months for 20 years = 40 coupon payments

Pmt =$1000*7.25%*6/12=$36.25

Pv = $875

Fv =$1000

Let plug in the formula

=rate(40,36.25,-875,1000)=4.28% semiannually

=4.28% *2=8.56% annually

Now let calculate the after tax cost of debt using this formula

After tax cost of debt=8.56%*(1-t)

Where,

t represent tax rate of 40%

Let plug in the formula

After tax cost of debt=8.56%*(1-0.4)

After tax cost of debt=5.14%

Therefore the best estimate of the after-tax cost of debt is 5.14%

8 0
2 years ago
An investment that costs $105,000 today is expected to produce the following cash inflows over each of the next five years: $20,
bearhunter [10]

Answer: 1.89%

Explanation:

You can use Excel to find the IRR here:

Investment amount should be first as shown and should be in negative.

The cash flows will then follow each other by year.

Use the =IRR formula to select all the cells and the IRR will show.'

IRR here = 1.89%

6 0
2 years ago
To maintain public confidence and trust in the financial reporting of companies is the purpose of
irakobra [83]

Answer:

The answer is: the Sarbanes-Oxley Act of 2002

Explanation:

The Sarbanes-Oxley Act (SOX) was elaborated in response to several high profile corporate scandals involving multinational corporations. The most infamous scandal involved Enron Corporation and Arthur Andersen LLP (one of the five largest accounting corporations in the world).

The SOX set new requirements for all publicly traded corporations (especially their upper management) an public accounting firms. Only some parts of the SOX apply to private companies.

8 0
3 years ago
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