Answer:
I'm not sure what this question is about, but the concept of the income expenditures model and its components is the following:
In the income (or aggregate) expenditures model, its author (Keynes) established certain assumptions in order to analyze how the economy works as a whole. His assumptions included that investment, government spending and net exports were all independent from income level.
When the economy is at equilibrium, total expenditures (GDP) = income level = consumption + government + investment + net exports
Another important assumptions are:
- marginal propensity to consume (MPC) + marginal propensity to save (MPS) = 1
- consumption = autonomous consumption + [MPC x (total income level - taxes)]
Savings = investment increase when disposable income increases or real GDP increases.
This model is used to explain the relationship between labor and production levels, and how they are affected by the economy's total expenditures. By increasing expenditures, the demand for labor and products/services will increase.
Answer:
<u>A. The illiquidity of the investment</u>
<u>Explanation:</u>
This rightly could be considered as the MOST important item to disclose to a customer who invests in a fund of hedge funds. Let's imagine a customer who invests in a hedge fund and a few days later feels he could take back out from his investment, only to learn about the illiquid nature of hedge fund investment.
For clarity, to say that<em> hedge funds are illiquid means that they require all investors to keep their money in the fund for at least one year, </em>often called the lock-up period. With certain limitations on withdrawals.
Answer: The correct answer is "business advertising".
Explanation: <u> Business advertising</u> tends to appear in specialized trade publications or professional journals, in direct-mail pieces sent to businesses, or in trade shows.
Through business advertising, companies seek to reach people who can potentially buy or specify goods and services for business use.
Answer: The incorrect statement regarding relevant revenues is "past or future revenues may be relevant-"
Explanation:
Relevant revenue is one that differ between the options that are relevant to a decision. If an income will be the same regardless of the option selected, the decision has no effect on the income.
<u>So The relevant revenue is future.</u>
A past income has already happened and will be the same regardless of the decision that is made, therefore it is not relevant when making a decision.
