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irinina [24]
3 years ago
11

What is contractionary policy used for?

Business
1 answer:
Nata [24]3 years ago
4 0

Answer:

To fight rapid inflation

Explanation:

When government notice or discovers that the volume of money in circulation is on the high side, she uses contractionary policy to mop up the excess money in circulation. The aim is to reduce speculation and excess money supply in the economy.

Inflation is the rapid rise in the prices of goods and services which is due to too much money in circulation. When inflation is glaring in an economy, government uses contractionary policy such as increasing taxes and lowering government expenditure.

Increament in taxes would reduce the purchasing power of individuals , household and firms hence reduce the volume of money in circulation. Lowering government spending or expenditure will also reduce excess money in the economy because fewer money will be available in the economy by so doing.

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The management of Lanzilotta Corporation is considering a project that would require an investment of $280,000 and would last fo
Neko [114]

Answer:

3.37 years

Explanation:

Calculation to determine what The payback period of the project is closest to

First step is to calculate the Net Cash inflow for the year

Net Cash inflow for the year =$114,000-$31,000

Net Cash inflow for the year =83,000

Now let calculate the Payback period

Using this formula

Payback period=investment/Net Cash inflow for the year

Let plug in the formula

Payback period=$280,000/83,000

Payback period=3.37 years

Therefore The payback period of the project is closest to 3.37 years

5 0
3 years ago
How do you think the benefits will help the firm before they<br> engage in I.M?
GaryK [48]

An information memorandum is very vital for a business because its gives the potential buyers an impression of your business before they meet physically or online with the company.

<h3>What is an information memorandum?</h3>

Let understand that the I.M. refers to an information memorandum.

An information memorandum refers to sales memorandum which is document produced prior to selling the business or opening of pitch to any prospective buyers.

In conclusion, an information memorandum is very vital for a business because its gives the potential buyers an impression of your business before they meet physically or online with the company.

Read more about information memorandum

<em>brainly.com/question/3352783</em>

4 0
2 years ago
National Dog Week is a dog food manufacturing factory. Suppose the theoretical capacity for the factory is 25,000 pounds/month.
vichka [17]

Answer:

National Dog Week

herefore, the average safety capacity of the factory is __5,000__ pounds/month.

Explanation:

a) Data and Calculation:

Theoretical capacity for the factory = 25,000

Effective capacity for the factory =     20,000

Safety capacity for the factory =           5,000

b) The safety capacity of National Dog Week describes the factory's capacity that is not being put to use currently but can be called to use when demand requires it.  It is the difference between the factory total usable capacity and the effective currently being used capacity.

8 0
3 years ago
Your professor hands you a piece of paper with the number 75 on it and tells you this is your current average in the class. Sinc
zzz [600]

Answer:

Your professor hands you a piece of paper with the number 75 on it and tells you this is your current average in the class. Since this is your fourth year as a college student, you know you could work hard to bring that average up to a B by the end of the semester. This is data.

D. data

Explanation:

To understand what data is, consider the explanation below;

1. Data: data is a piece of raw information that can be converted to useful information. They are facts and statistics usually derived from observations and study that once processed and analysed, useful information can be extracted from it. Data can be analysed in different ways depending on the expected results. In the modern age, data is very important since they provided a factual basis for theories. Data can be processed manually or through the use of software applications.

An example of data is the score that the professor gave you which is 75, this score implies a specific grade ranking. This data was useful to you, since you analysed it and came to the conclusion that by working hard you can average this score up to a B by the end of the semester. The process through which you took the data which is 75, analysed it by comparing it to the grading system and coming to a conclusion is an example of data processing.

3 0
3 years ago
Return to question Item 1 Item 1 In its first year of operations, Roma Company reports the following. Earned revenues of $65,000
AlladinOne [14]

Answer:

Cash basis accounting  (record accounting transactions only when the corresponding cash is received or payments are made)

Revenues (cash receipts)          $57,000

<u>Expenses ($27,250+$11,750)    $39,000 </u>

Net income                                 $18,000

Accrual basis accounting  (record accounting transactions for revenue when earned and expenses when incurred)

Revenues (earned)                     $65,000

<u>Expenses (incurred)                   $35,500 </u>

Net Income                                $29,500

6 0
3 years ago
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