Answer:
3. People don’t act as the Fed hopes.
a. The Fed can create conditions meant to encourage people to, for example, borrow more money. But if people are fearful of going into debt when their employment situation is uncertain, they may not respond to the Fed’s incentives.
- people make heir personal decisions based on what they expect to happen in heir future
1. The long run is different from the short run.
b. Although an expanded money supply can briefly stimulate economic growth, eventually the economy will return to the same level of productivity, just at higher prices for goods and wages.
- equilibrium is the key word regarding the long run
2. People adjust their expectations.
c. Fed actions are most effective when they come as a surprise. When people have figured out in advance what the Fed is going to do, the Fed’s actions don’t have as much impact.
- People's expectations can result in the failure of economic policies. For example, if households expect higher inflation, they might take loans or accelerate their purchases.
Answer:
Decrease; Increase
Explanation:
When there is a decline in the marginal productivity of low skilled workers, it results in a decline or decrease in the demand for low skilled workers. Marginal productivity is the extra output gained from adding one unit of labour. Thus, if low skilled workers are added to increase marginal productivity, but then reaches the point of decline, the demand or the need for those low skilled workers reduces. The reduction or decrease in the demand for these low skilled workers then lead to an increase in number of unemployed workers as those unskilled workers becomes jobless.
Answer:
Investment, you buy a property to rent in hope to make your money back over time.
Explanation:
Answer:
Property plant and equipment is listed at net value
Explanation:
Good will is intangible as it is an asset without physical attributes. Depreciation is the systematic allocation of cost for an asset based. It is an expense and not a cash expense, R and D is not an investment but an expense. R and D is not usually capitalized.
Balance sheet items are listed at market value. This is not true. For instance, Inventory is a balance sheet item and it is carried at the lower of cost or net realizable value.
Property plant and equipment is listed at net value. This is true as Property plant and equipment is listed at the net of the historical cost and the accumulated depreciation.
Answer:
B . Free cash flow less cash provided by operations and capital expenditures.
Explanation:
In Business, dividends can be defined as share of profits and retained earnings that a publicly listed company pays out to its investors or shareholders for investing into the business venture.
Dividends paid is equal to free cash flow less cash provided by operations and capital expenditures.
Free cash flow isn't reported on the statement of cash flows and it is the cash provided by operations less capital expenditures and cash dividends.
