Too little spending in an economy often leads to: Recession
A recession is an important, widespread, and a very long downturn in any economic activity. Because recessions generally lasts for six months and more, one common rule of thumb is that two consecutive quarters of decline in a country's Gross Domestic Product will constitute a recession.
Economists which includes those at the National Bureau of Economic Research defines the recession as an economic contraction which starts at the peak of the expansion that preceded it and also ends at the low point of the ensuing downturn.
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Answer:
£.0.6875 per USD
Explanation:
PPP stands for purchasing power parities. It is actually the rate of currency conversion.
As per the given information, the price level recently increased by 20% in England while falling by 5% in the United States, so the net increase in the U.S. dollar would be (20+5)=25%.
This can be taken as that now 20% more pounds shall be needed to purchases the same U.S. goods.
Hence the new exchange rate would be:
= 1.25 x £0.55/$1 = £.0.6875 per USD
Answer:
1. Population of those owning a pet in the business area
2. Secondary research technique
Explanation:
1. This provides valuable insight into the possible expected market demand for your cremation services, because the number of those having pets let you know if it is viable to get clients in that location or relocate to another promising location.
2. A secondary research technique allows for a situation as this; in which one has a limited budget. This is the case because one can quickly lookup existing research data from reputable sources such as the US Census Bureau free of charge about the target audience.
Answer:
TR decreases if Demand is Elastic, TR increases if Demand is Inelastic
Explanation:
Price Elasticity of Demand is the responsive change in price, due to change in price. Elastic demand means demand responds more to price change, Inelastic demand means demand responds less to price change. Total Revenue is the total receipt value from sales = Price x Quantity
- If demand is elastic : price & total revenue are inversely related - price increase, demand decrease & price decrease, demand increase.
- If demand is inelastic : price & total revenue are directly related - price increase, demand increase & price decrease, demand increase
So, If a company increases its sale price per unit of a product :
- Total Revenue would increase as a result of price rise, if demand is Inelastic
- Total Revenue would decrease as a result of price rise, if demand is Elastic
Answer:
Since the NPV is positive, it is a profitable investment.
Explanation:
Solution
Given that:
The initial investment of $100 would be considered as an outflow.
The inflow for the next three years will be =$50
The discount rate r = 0.2
To find or determine the probability of the investment, discount the future of outflows and inflows. the following formula is applied or used to find the present value of inflows
PV = FV/(1 + r )^k
Where
PV = present value
FV =future value
r = discount rate
k = time period
Now,
For k =1
PV = 50/(1 + 0.2)
=$41.67
So,
PV for k = 2 is $34.72 and for k =3 is $28.94
Thus,
The net present value can be calculated by the difference between the outflows and total inflows
NPV =$100- ($41.67 + $34.72 + $28.94)
=$5.33
