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3 years ago

Provisions in the law that automatically increase government spending or decrease taxes when real output declines are called:

Business

1 answer:

vekshin13 years ago

7 0

Answer: automatic stabilizers

Explanation:

Automatic stabilizers are the provisions in the law that automatically increase government spending or decrease taxes when real output declines.

It should be noted that automatic stabilizers can be used to reduce recession impact on people by helping them to survive even when there is a job loss.

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Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase wit

vodka [1.7K]

Answer:

1 -- A, 2 -- B, 3 -- C, 4 -- E, 5 -- D

Explanation:

Securities held to maturity --

It requires the positive intent as well as ability.

Unrealized holding gains and losses --

Reported for the income statement of trading securities.

Impairment of securities available for sale --

Requires a recognition in income statement when judged to be other than the temporary.

Losses of investee --

Recognized only to extent of the carrying value under an equity method.

Amortization of a patent that was obtained in a business acquisition --

Reduces the investment account under an equity method if the fair value is higher than the book value.

6 0

3 years ago

Suppose the current unemployment rate is 5%, the labor force is 400 million people, the labor force participation rate is 80% an

Reika [66]

Answer:

20,000,000= unemployed people

Explanation:

Giving the following information:

Suppose the current unemployment rate is 5%, the labor force is 400 million people, the labor force participation rate is 80% and the working-age population is 500 million people.

The unemployment rate is the number of people of working age, disposed to work and looking for a job.

Labor force rate= unemployed people/ labor force

0.05= unemployed people/ 400,000,000

400,000,000*0.05= unemployed people

20,000,000= unemployed people

7 0

3 years ago

A corporate bond has a face value of $1,000 and a coupon rate of 9.5%. The bond matures in 12 years and has a current market pri

joja [24]

Answer:

5.71%

Explanation:

The after tax cost of debt=pretax cost of debt*(1-t)

where t is the tax rate of 35% or 0.35

pretax cost of debt=yield to maturity

The yield to maturity can be determined using rate formula in excel as below:

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

nper is the number of coupon interest payable by the bonds i.e 12 coupons in 12 years

pmt is the annual coupon=$1000*9.5%=$95

pv is the current market price-flotation cost=$1,100-$48=$1052

fv is the face value of $1000

=rate(12,95,-1052,1000)=8.78%

After tax cost of debt=8.78% *(1-0.35)=5.71%

6 0

3 years ago

Eastern Electric currently pays a dividend of about $1.64 per share and sells for $27 a share.

Gre4nikov [31]

Answer:

a. 9.07%

b. 5.93%

c. 12.07%

Explanation:

Dividend valuation method is used to calculate the the value of stock based on the dividend paid, its growth rate and rate of return.

Stock Price = Dividend / ( Rate of return - Growth rate )

$27 = $1.64 / ( Rate of return - 3% )

Rate of return - 0.03 = $1.64 / $27

Rate of return - 0.03 = 0.0607

Rate of return = 0.0607 + 0.03

Rate of return = 0.0907 = 9.07%

$27 = $1.64 / ( 12% - Growth rate )

0.12 - Growth rate = $1.64 / $27

0.12 - Growth rate = 0.0607

Growth rate = 0.12 - 0.0607

Growth rate = 0.0593 = 5.93%

$27 = $1.64 / ( Rate of return - 6% )

Rate of return - 0.06 = $1.64 / $27

Rate of return - 0.06 = 0.0607

Rate of return = 0.0607 + 0.06

Rate of return = 0.1207 = 12.07%

4 0

3 years ago

If the number of potential workers in an economy increases while the size of the labor force remains unchanged, ________. A. th

galben [10]

Answer:

<h2>The answer here would be option C. from the answer list or options given in the question which is the labor force participation rate will fall.</h2>

Explanation:

Labor force participation rate basically reflects the total or overall number of people who are actively participating the labor or work force in the economy and are actually qualified and eligible to be officially part of the work or labor force.
Hence,even if the number of eligible and qualified people or workers in the economy potentially increases and the overall size of the work or labor force remains constant,it essentially implies that much of the eligible and qualified laborers or workers is either unemployed or has not been properly mobilized or utilized in the labor or work force in the economy.It can also indicate that majority of the people who are presently participating in the labor force are not eligible or fully qualified as per their occupational or professional designation.
Therefore,in this instance the labor force participation rate will decline as the overall proportion of employment of the eligible and qualified laborers or workers does not really increase in the economy.Therefore,even if the number of potential workers or the labor resource increase in the economy,it has not been properly or completely utilized or employed in the overall labor force.

6 0

3 years ago