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Furkat [3]
3 years ago
14

Which of these statements about liquidity traps is false? Firms are unlikely to undertake investment during liquidity traps beca

use interest rates are prohibitively high. The United States probably experienced a liquidity trap during the Great Depression. The zero bound of interest rates prevents policy makers from taking some actions that could stimulate economic growth. Expansionary monetary policy is difficult to achieve.
Business
1 answer:
nika2105 [10]3 years ago
3 0

Answer:

The correct answer is: firms are unlikely to undertake investment.

Explanation:

The liquidity trap is a situation described in the Keynesian economy according to which, liquidity injections into the private banking system by the central bank do not lower interest rates or inject money into the economy and therefore do not stimulate economic growth as claimed by monetarism.

The liquidity trap occurs when people accumulate cash because they expect an adverse event, such as deflation, reduction in aggregate demand and GDP, an increase in the unemployment rate or a war. People are not buying, companies are not borrowing and banks are not lending either because they do not have enough solvency since the economic outlook is uncertain and investors do not invest because the expected returns on investments are low.

The most common characteristics of a liquidity trap are interest rates close to zero and fluctuations in the monetary base that do not translate into fluctuations in general price levels.

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When using various forms of promotion to carry the promotion message, it is important that the recipients of the message interpr
ivanzaharov [21]

Answer:

The correct answer is B. integrated marketing communication

Explanation:

Integrated Marketing Communications ensures that all forms of communications and messages are carefully linked together. At its most basic level this communication means integrating all the promotional tools, so that they work together in harmony.

5 0
3 years ago
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governments that are interested in minimizing the efficiency costs of taxation should only tax goods where
lisov135 [29]

Answer:

Governments that are interested in minimizing the efficiency costs of taxation should only tax goods where demand or supply, or both, are relatively inelastic.

Explanation:

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6 0
3 years ago
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Compute conversion costs given the following data: direct materials, $381,400; direct labor, $196,500; factory overhead, $194,00
qwelly [4]

Answer:

Conversion costs: c.$390,500

Explanation:

Conversion costs are those production costs required to convert raw material to finished goods. Conversion costs include direct labor and manufacturing overheads costs.

Conversion Costs = Direct Labor cost + Manufacturing Overheads cost= Total Manufacturing Costs – Direct Material cost

With direct labor cost of $196,500; factory overhead cost of $194,000.

Conversion Costs = $196,500 + $194,000 = $390,500

4 0
3 years ago
On November 1, 2018, Quantum Technology, a geothermal energy supplier, borrowed $22 million cash to fund a geological survey. Th
IgorLugansk [536]

Answer:

<u>when signing the note:</u>

cash    22,000,000

    note payable       22,000,000

<u>accrued interest at december 31th, 2018</u>

interest expense 330,000 debit

     interest payable           330,000 credit

payment of the note:

<u>payment of the note</u>

note payable   22,000,000

interest payable    330,000

interest expense  1,185,000

                  cash                     23,485,000

Explanation:

adjusting entry:

principal x rate x time

22,000,000

rate 9% / 12 = 0.0075

months 2

We must express rate and time in the same metric, in this case, months

22,000,000 x 0.75 x 2 = 330,000 accrued interest

payment of the note:

22,000,000 x 0.75 x 9 = 1,485,000

already accrued                 330,000

interest expense               1,185,000

3 0
3 years ago
Using the following information: (a) The bank statement balance is $3,471. (b) The cash account balance is $3,844. (c) Outstandi
OleMash [197]

Explanation:

The preparation of the bank reconciliation statement is presented below:

                                          Miller Co.

                    Bank reconciliation statement  

                                         August 31  

Particulars                    Amount            Particulars                          Amount  

Bank cash balance      $3,471            Company cash balance       $3,844

Deposits in transit       $824               Less: Error                        $9  

                                                                                              ($43 - $34)

Less: Outstanding                               Less: service fee                 -$90          

Check                         -$550

Bank balance                                      Company balance

After reconciliation   $3,745              After reconciliation $            $3,745

3 0
3 years ago
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