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3 years ago

The wealth effect refers to the fact that

Business

1 answer:

Sloan [31]3 years ago

3 0

Answer:

a. when the price level falls, the real value of household wealth rises, and so will consumption.

Explanation:

A wealth gap is the difference between the richest and poorest citizens living in a geographical location based on the level of their assets and net worth i.e assets minus their debts. Also, these informations about the citizens when generated by the government are typically used for formulating economic policies, plan and financial budgets.

Wealth effect is a behavioral economics theory (psychological phenomenon) which states that an increase or decrease in the value of an asset such as bonds, stocks, property, etc., would result in an increase or decrease in consumer spending respectively.

This ultimately implies that, the wealth effect refers to the fact that when the price level falls, the real value of household wealth rises, and so will consumption. Thus, it is mainly focused on examining how a change (increase or decrease) in personal wealth of a household influences (affects) economic growth and by extension consumer spending over a specific period of time.

In conclusion, when there is an overall increase in the performance of an asset, consumer spending would rise and increase ultimately.

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A firm has an issue of $1,000 par value bonds with a 12 percent stated interest rate outstanding. The issue pays interest annual

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Answer:

Explanation:

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3 years ago

Approximately ________ percent of the federal budget is in the mandatory spending category

Goshia [24]

The answer is 9%. According to the CBO, defense expenditure grew 9% yearly on average from fiscal year 2000-2009. Much of the costs for the conflicts in Iraq and Afghanistan have not been subsidized through regular arrogations bills, but over emergency supplemental appropriations bills.

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3 years ago

Pier is trying to determine which leadership style to use in making a decision that may have a major impact on his company. He’s

oksian1 [2.3K]

Answer:

The answer is: Normative leadership model

Explanation:

The normative leadership model requires Pier to analyze the following seven situations:

How will my decision will affect the organization?
Is it important that team members are committed to the decision making process.?
As a leader, do I possess the knowledge to solve try to solve this issue?
If only I are responsible for making the decision, will the rest of the team be committed to it?
My team members support me and the organization?
The team members possess the knowledge to try to solve this issue?
Can team members unite and really work as a team to solve this issue?

Depending on what Pier believes the correct answers are for the above questions, he can decide to use one of the following decision making processes:

Decide: Pier makes the decision by himself with little or no participation of the team members.
Consult (Individually): Pier consults the team members individually, deciding what information to use, and then makes a decision by himself.
Consult (Group): Pier organizes a group meeting where all members express their opinions, then decides what information is useful and makes the decision by himself.
Facilitate: Pier organizes a group meeting and presents his opinion and every group member participates. The decision is made by group consensus.
Delegate: Pier leaves the decision making process entirely to the group members and doesn't participate in it.

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3 years ago

Select the items below which must be adjusted to the book balance: ________

Alona [7]

Answer:

b. Book Error

e. Interest earned on the Checking account

f. Collections of Accounts receivable by the bank.

Explanation:

Items which must be adjusted to the book balance as this question is concerned are Book Error, Interest earned on the Checking account & Collections of Accounts receivable by the bank.

These above items require adjustment in book balance to compute the adjusted book balance.

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3 years ago

Which term describes the art of manipulating people so that they break normal security procedures allowing the release of confid

lisov135 [29]

The term is SOCIAL ENGINEERING.
Social engineering is the art of manipulating people into breaking information security procedures or to give away confidential information which they have at their disposal.

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3 years ago

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