Answer:
The effect of negative interest rates on the economy is reflected in option D: negative interest rates simply cannot happen in reality. Answer D is the correct response.
Explanation:
Answer C is partially correct. In reality, experiments are running on economies as today: Greece economy. After a huge recession in previous years, the Government has released bonuses that, at the end of their effective period, will be charging people for actually buy them, and not paying them back. This leads us to answer D: negative interest rates can actually happen, but they cannot exist as an economic mechanism that develops the economy: customers will go for profit, not cost.
The effect of this model is negative on the economy since it will not provide enough resources for stimulation. Also, it will not slow it down since it is not expected that an instrument with negative interest rates will be accepted, in the form of bonuses, by customers; or loans, provided by banks.
Answer:
the correct answer is $1,250
Explanation:
(The average variable costs + the average fixed costs) * Production units
=
The firms total costs
$2.00 + $0.50 =$2.50
$2.50 * 500= $1,250
GOOD LUCK
Answer:
expected return = 12.03%
Explanation:
using the dividends growth model we can calculate the required return
2.22 x 1.03 = 2.2866
We must remember that the gordel model is used with next year dividends
2.2866(return - 0.023) = 19
2.2866/19 +0.023 = return
return = 12.03%
Answer:
Explanation: A. Shadow price has not changed because Shadow price show value of a commodity without considering final cost.
B. Change in value 180 - 150/180 X 100 = 16.7
C. The optimal solution didn't change because the product price went from it highest profit 180 to it's least cost 150
Answer:
The balance of accounts receivable on January 1, 2018 is $31,180.
Explanation:
The following are given in the question:
Percentage of allowance for uncollectible accounts = 3%
Credit sales = $125,000
Collections = $131,000
Amount written off = $180
Therefore, we have:
Account receivable on 31 December 2018 * 3% = $750
Account receivable on 31 December 2018 = $750 / 3% = $25,000
Accounts receivable on 01 January 2018 = Account receivable on 31 December 2018 - Credit sales + Collections + Amount written off = $25,000 - $125,000 + $131,000 + $180 = $31,180
Therefore, the balance of accounts receivable on January 1, 2018 is $31,180.
